Question
1)The debt of this company is currently 60% of the assets, the remaining capital structure is financed with common equity with a cost of 3%.
1)The debt of this company is currently 60% of the assets, the remaining capital structure is financed with common equity with a cost of 3%. The cost of debt was $800,000 for the entire $10,000,000 of the firm's liabilities. Please calculate the WACC with a tax rate of 40%.
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss
8th Canadian Edition
01259270114, 9781259270116
