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24 XYZ corporation has the following market value based capital structure. Long term bonds $20 billion Common equity $30 billion The required rate of return
24 XYZ corporation has the following market value based capital structure. Long term bonds $20 billion Common equity $30 billion The required rate of return for the common stock is 20% and the yield to maturity for the bonds is 10%. The tax rate is 30%. Compute the after tax weighted average cost of capital. Report the answer as a percentage figure without the % symbol
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Managerial Accounting Strayer University
Authors: Strayer University
3rd Custom Edition
0077234804, 978-0077234805
