RocketFuel Limited has 65% of its assets financed with bank debt and the remaining with equity. The
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RocketFuel Limited has 65% of its assets financed with bank debt and the remaining with equity. The bank debt has abefore-taxinterest cost of 9.1%. RocketFuel's shareholders require a 15.4% return on their investment. If the tax rate is 30%, what is the firm's cost of capital (WACC)?
Related Book For
Financial Theory and Corporate Policy
ISBN: 978-0321127211
4th edition
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
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