Apple expects its EBIT to be 1.5 million dollars per year forever. The company can borrow at 7 percent. The company current has no debt, and its cost of equity is 15 percent and the tax rate is 25 percent. If the company borrows 1 million dollars and uses the proceeds to repurchase shares, the company's WACC is _____ %. (Do not round intermediate calculations and round your answer to two decimal places, e.g., 32.16. Do not include percentage sign.)

Answer rating: 100% (QA)

To calculate the weighted average cost of capital WACC after the company borrows 1 million and uses ... View the full answer