STK Inc., which is taxed at $0.20 of every dollar earned, has a debt-to-equity ratio of 1/5, where its equity totals $1,200,000- debt and equity investors require 8.5% and 9.75%, respectively; what is YSJ Inc.’s WACC, and how are your computations impacted if the D/E is lowered to 15% (show all your work)?

Answer rating: 100% (QA)

To calculate the Weighted Average Cost of Capital WACC for STK Inc well use the formula WACC E V Re ... View the full answer