Given a WACC of 15 percent, a target debt to value of 0.50, a tax rate of

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Given a WACC of 15 percent, a target debt to value of 0.50, a tax rate of 28 percent, and a cost of debt of 10 percent, what is the implied cost of equity?

Cost Of Debt
The cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking...
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Entrepreneurial Finance

ISBN: 978-0538478151

4th edition

Authors: J . chris leach, Ronald w. melicher

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