Question
Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt-equity ratio of 1.29. The cost of equity is 12.9 percent and
Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt-equity ratio of 1.29. The cost of equity is 12.9 percent and the pretax cost of debt is 7.3 percent. What is the capital structure weight of the firm's equity if the firm's tax rate is 21 percent?
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
11th edition
978-1111530266
