Question: Served Help Save & Exit Submit The following data pertain to Darwin Industries: Interest rate on debt capital: 10.1% Cost of equity capital: 13.1% Before-tax
Served Help Save & Exit Submit The following data pertain to Darwin Industries: Interest rate on debt capital: 10.1% Cost of equity capital: 13.1% Before-tax operating income: $46 million Market value of debt capital: $61.2 million Market value of equity capital: $142 million Total assets: $161 million Income tax rate: 20% Total current liabilities: $26 million Required: A. Compute Darwin's weighted average cost of capital. (Round your answer to 1 decimal place.) B. Compute Darwin's economic value added. (Do not round Intermediate calculations. Round your final answer to nearest whole dollar amount.) A. Weighted average cost of capital B. Economic value added
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