In the video, the tax rate for Brick and Mortar Co. was 30%. What would your calculation
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In the video, the tax rate for Brick and Mortar Co. was 30%. What would your calculation of the company’s WACC be if there was a change in the tax code and the tax rate for Brick and Mortar Co. fell to 15%? Why does the tax rate impact a firm’s WACC? Do you think the managers of Brick and Mortar Co. should consider making any changes to its capital structure if the tax rate falls to 15%? Why or why not?
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