Bermuda Cruises issues only common stock and coupon bonds. The company has a debt to equity ratio
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Question:
Bermuda Cruises issues only common stock and coupon bonds. The company has a debt to equity ratio of 1.39. The cost of equity is 13.4 percent and the pretax cost of debt is 7.5 percent.
What is the capital structure weight of the company's equity if the company's tax rate is 35 percent?
Related Book For
Intermediate Accounting Volume 2
ISBN: 9781260881240
8th Edition
Authors: Thomas H. Beechy, Joan E. Conrod, Elizabeth Farrell, Ingrid McLeod-Dick, Kayla Tomulka, Romi-Lee Sevel
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