A firm has a 59% debt of 30 million, whose average interest rate to the firm is
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Question:
A firm has a 59% debt of €30 million, whose average interest rate to the firm is 9,90%. Equity investors require an average return of 14,70% to stay invested in the firm. The tax rate is 30%.
What is the weighted average cost of capital for the firm?
Related Book For
Financial Management Theory and Practice
ISBN: 978-1305632295
15th edition
Authors: Eugene F. Brigham, Michael C. Ehrhardt
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