Precision Engineering has a equity ratio of 65 percent and a debt ratio of 35 percent Its cost of equity is 15 4 percent, and its pre tax cost of debt is 7 8 percent If the tax rate is 34 percent, what is the company 's WACC Use full percentages and two decimals ...

Weight Cost Product Debt 035 ...

Precision Engineering has a equity ratio of 65 percent and a debt ratio of 35 percent. Its

Question:

Precision Engineering has a equity ratio of 65 percent and a debt ratio of 35 percent. Its is 15.4 percent, and its pre-tax is 7.8 percent. If the tax rate is 34 percent, what is the company's WACC? Use full percentages and two decimals.
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... Cost Of Equity
The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm's cost of equity represents the...