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 12 percent, and its cost of equity estimate is 20 percent. It pays federal, state, and local taxes at a 35 percent marginal rate. What is the firm's corporate cost of capital? Round your answer to two decimal points. Generic Health Services has a target capital structure of 35 percent debt and 65 percent equity. Its cost of debt estimate is 12 percent, and its cost of equity estimate is 20 percent. It pays federal, state, and local taxes at a 35 percent marginal rate. What is the firm's corporate cost of capital? Round your answer to two decimal points.
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