Generic Health Services has a target capital structure of 35 percent debt and 65 percent equity....
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Generic Health Services has a target capital structure of 35 percent debt and 65 percent equity. Its cost of debt estimate is 8 percent, and its cost of equity estimate is 16 percent. It pays federal, state, and local taxes at a 40 percent marginal rate. What is the firm's corporate cost of capital? Round your answer to two decimal points. Do not enter the % sign as it could results into a 0 and wrong your answer. Generic Health Services has a target capital structure of 35 percent debt and 65 percent equity. Its cost of debt estimate is 8 percent, and its cost of equity estimate is 16 percent. It pays federal, state, and local taxes at a 40 percent marginal rate. What is the firm's corporate cost of capital? Round your answer to two decimal points. Do not enter the % sign as it could results into a 0 and wrong your answer.
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