A company wants to maintain a proportion of debt/equity at 20%/80%. If the WACC is 18.6%, and

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A company wants to maintain a proportion of debt/equity at 20%/80%. If the WACC is 18.6%, and the pre-tax cost of debt is 9.5%, what is the cost of common equity assuming a tax rate of 35%?

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Fundamentals of Financial Management

ISBN: 978-1337395250

15th edition

Authors: Eugene F. Brigham, Joel F. Houston

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Posted Date: Mar 08, 2024 12:01 AM

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A company wants to maintain a proportion of debt/equity at 20%/80%. If the WACC is 18.6%, and

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The Weighted Average Cost of Capital WACC can be calcula... View the full answer

Fundamentals of Financial Management

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