SL Equipment is a company currently with a debt-to-equity ratio of 0.25. Shareholders currently require a return
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SL Equipment is a company currently with a debt-to-equity ratio of 0.25. Shareholders currently require a return of 12% and the cost of debt is 5%. The corporate tax rate is 20%. What is the current WACC of this company?
What would be the WACC of this company if it changed its debt-to-equity ratio to zero?
What would be the WACC of this company if it changed its debt-to-equity ratio to 0.4?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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