Joseph Smith, Amtrax's CFO wants to maintain a target debt-to-equity ratio of 1/4. If the WACC is
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Joseph Smith, Amtrax's CFO wants to maintain a target debt-to-equity ratio of 1/4. If the WACC is 16.5%, and the pretax cost of debt is 8%, what is the cost of common equity assuming a tax rate of 40%?
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Accounting Principles
ISBN: 978-0470533475
9th Edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso
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