A company has financed 45% of its assets through a 11% after-tax cost of debt loan....
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A company has financed 45% of its assets through a 11% after-tax cost of debt loan. The remainder of its assets are financed through equity. The firm's required return on equity is 16%. Calculate the company's weighted average cost of capital (WACC)? A company has financed 45% of its assets through a 11% after-tax cost of debt loan. The remainder of its assets are financed through equity. The firm's required return on equity is 16%. Calculate the company's weighted average cost of capital (WACC)?
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We can calculate the WACC using the following formula WACC EV Re DV Rd 1 Tc Where EV is the weig... View the full answer
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