A firm with a 40% marginal tax rate has a capital structure of P60,000,000 in debt and P140,000,000 in equity. What is the firm's weighted cost of capital if the marginal pretax cost of debt is 12%, the firm's average pretax cost of debt outstanding is 8%, and the cost of equity is 14.5%?

Answer rating: 100% (QA)

Answer Value weight Cost weightcost 60000000 03 0... View the full answer