Question
21. A company has only two type of capital : debt and equity. It has a target debt-equity ratio of 1.2 . Its cost of
21. A company has only two type of capital : debt and equity. It has a target debt-equity ratio of 1.2 . Its cost of equity is 9% , and its cost of debt is 4%. If the tax rate is 30% , what is the company s WACC? (Enter your answers a percent rounded to 2 decimal places, leave out % sign, for example, for answer 0.43%, enter 0.43 only)
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Mathematics Of Finance
Authors: Robert Brown, Steve Kopp, Petr Zima
8th Edition
0070876460, 978-0070876460
