Suppose your company has a cost of capital of 16% and a cost of debt of 7%.
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Question:
Suppose your company has a cost of capital of 16% and a cost of debt of 7%. If the target debt/equity ratio is 0.80 and the tax rate is 35%, what is the company's weighted average cost of capital (WACC)?
Related Book For
Intermediate Financial Management
ISBN: 978-1111530266
11th edition
Authors: Eugene F. Brigham, Phillip R. Daves
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