Question: 17. The XYZ, Inc finances its operations by using 75% equity and the rest using debt. The cost of equity is 13% and the cost

 17. The XYZ, Inc finances its operations by using 75% equity

17. The XYZ, Inc finances its operations by using 75% equity and the rest using debt. The cost of equity is 13% and the cost of debt is 5%. The corporate tax rate is 30%. What is the WACC of the CI Corp? 18. The debt-to-equity ratio of the CI Corp. is 0.5. If its cost of equity is 10,5%, and its pretax cost of debt is 4%, what is the company's WACC? The tax rate is 35%

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