An MNC has total assets of $100 million and debt of $20 million. The firm's before-tax...

  

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An MNC has total assets of $100 million and debt of $20 million. The firm's before-tax cost of debt is 11 percent, and its cost of financing with equity is 15 percent. The MNC has a corporate tax rate of 40 percent. What is this firm's cost of capital? Do not round intermediate calculations. Round your answer to two decimal places. % An MNC has total assets of $100 million and debt of $20 million. The firm's before-tax cost of debt is 11 percent, and its cost of financing with equity is 15 percent. The MNC has a corporate tax rate of 40 percent. What is this firm's cost of capital? Do not round intermediate calculations. Round your answer to two decimal places. %

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Heres how to calculate the firms cost of capital WACC Calculate the weight of debt Wd ... View the full answer