Suppose that your firm has a cost of equity of 18% and a cost of debt...

 

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Suppose that your firm has a cost of equity of 18% and a cost of debt of 8%. If the target capital structure includes 40% debt and 60% equity, and the tax rate is 35%, what is the firm's weighted average cost of capital (WACC)? A) 7.4% B) 9.9% C) 12.8% D) 13.2% E) 14.3% Suppose that your firm has a cost of equity of 18% and a cost of debt of 8%. If the target capital structure includes 40% debt and 60% equity, and the tax rate is 35%, what is the firm's weighted average cost of capital (WACC)? A) 7.4% B) 9.9% C) 12.8% D) 13.2% E) 14.3%

Answer rating: 100% (QA)

Cost of debt aftertax8... View the full answer