Calculate the weighted average cost of capital for TT Trane Technologie. For cost of equity, use the
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Question:
Calculate the weighted average cost of capital for TT Trane Technologie. For cost of equity, use the average of your dividend growth and CAPM results. Assume that TT has a 25 percent overall tax rate:
Given :
WACC using book value weights for equity and debt = 6.1%
WACC using market value weights for equity and debt = 7.7%
Which WACC result is more relevant? Why?
Related Book For
Intermediate Financial Management
ISBN: 9780357516669
14th Edition
Authors: Eugene F Brigham, Phillip R Daves
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