Assume that TapDance, Inc.'s capital structure is 75 percent equity, 25 percent debt, and that its pretax

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Assume that TapDance, Inc.'s capital structure is 75 percent equity, 25 percent debt, and that its pretax cost of debt is 6 percent while its cost of equity is 11 percent. Assume the appropriate weighted average tax rate is 34 percent.

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What will be the WACC of TapDance? (Round your answer to 2 decimal places.) WACC %

Related Book For answer-question

Fundamentals Of Corporate Finance

ISBN: 9780135811603

5th Edition

Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford

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Posted Date: Apr 29, 2023 07:16 AM

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Assume that TapDance, Inc.'s capital structure is 75 percent equity, 25 percent debt, and that its pretax

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WACC Formula EV Ke DV Kd 1 Tax rate E Market Value of Equity V Tot... View the full answer

Fundamentals Of Corporate Finance

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