Question
1a.Calculate the pre- and post-tax WACC for the firm with $12,000,000 of debt at a pre-tax cost of 10% and $28,000,000 of equity at a
1a.Calculate the pre- and post-tax WACC for the firm with $12,000,000 of debt at a pre-tax cost of 10% and $28,000,000 of equity at a cost of 14%. The firm's tax liability rate is 40%.
b. What happens to the post-tax WACC if the firm's tax liability increases to 60%?
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TExES Business And Finance Secrets Study Guide
Authors: TExES Exam Secrets Test Prep Team
1st Edition
1516706862, 978-1516706860
