Assume that investors hold Alphabet Inc (GOOGL) stock in retirement accounts that are free from personal taxes.

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Assume that investors hold Alphabet Inc (GOOGL) stock in retirement accounts that are free from personal taxes. Also assume that GOOGL's current pre-tax WACC is 14% and its corporate tax rate is 35%. If GOOGL were to issue sufficient debt at a pre-tax cost of 7% to give them a debt to value ratio of 0.5, then the Google's after-tax WACC would be closest to:
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Corporate Finance Core Principles and Applications

ISBN: 978-1259289903

5th edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

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