No maximum minimum word count But the calculations should be shortly explained Font Arial 12,5 pts Text alignment Justified The in text References and the Bibliography have to be in Harvards citation style It assesses the following learning outcomes Demonstrate a deep understanding of the theory and practices of financing a firm and its capital structure Discuss and analyze the benefits of leasing versus the ownership of assets Analyze the concepts underlying the WACC Critically evaluate dividend policy Problem 4 (25 points) EU Corp would like to have a 10 4 percent weighted average cost of capital The companys cost of equity is 12 percent, and its pre tax cost of debt is 8 8 percent The tax rate is 20 percent What is the companys target debtequity ratio

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Question: No maximum/minimum word count. But the calculations should be shortly explained. Font: Arial 12,5 pts. Text alignment: Justified. The in-text References and the Bibliography have

No maximum/minimum word count. But the calculations should be shortly explained.
Font: Arial 12,5 pts.
Text alignment: Justified.
The in-text References and the Bibliography have to be in Harvards citation style

It assesses the following learning outcomes:

Demonstrate a deep understanding of the theory and practices of financing a firm and its capital structure.
Discuss and analyze the benefits of leasing versus the ownership of assets.
Analyze the concepts underlying the WACC
Critically evaluate dividend policy

Problem 4 (25 points)

EU Corp. would like to have a 10.4 percent weighted average cost of capital. The companys cost of equity is 12 percent, and its pre-tax cost of debt is 8.8 percent. The tax rate is 20 percent.

What is the companys target debtequity ratio?

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