Calculate the after-tax WACC for a firm with a 25 percent tax rate, a 10 percent cost

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Calculate the after-tax WACC for a firm with a 25 percent tax rate, a 10 percent cost of debt, a 30 percent cost of equity, and a target debt to value of 0.30. Explain how investing to provide the WACC returns keeps the debt and equity investors happy.

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Entrepreneurial Finance

ISBN: 978-0538478151

4th edition

Authors: J . chris leach, Ronald w. melicher

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