3 A firm has a WACC of 2 0 , a tax rate of 3 5 , RD 1 0 and RE 2 5 What is the ratio D ( D E )

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3 . A firm has a WACC of 2 0 % , a tax rate of 3 5 % , RD = 1 0 %

3 .

A firm has a WACC of

20 %,

a tax rate of

35 %,

= 10 %

and RE

= 25 % .

What is the ratio D

/ (

+

) ?

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