Question
1. Coca cola has equity of $30 million and debt of $10 million. Its cost of debt is 6% and the tax rate is 35%.
1. Coca cola has equity of $30 million and debt of $10 million. Its cost of debt is 6% and the tax rate is 35%. Its weighted average cost of capital is 12%.
What is its after tax cost of debt?
What is its cost of equity capital?
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Options Futures And Other Derivatives
Authors: John C. Hull
11th Edition
013693997X, 9780136939979
