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4. (5 Points) The MNC that you are consulting for is in the 24% U.S. tax bracket with total assets of $235,000,000. The equity financing
4. (5 Points) The MNC that you are consulting for is in the 24% U.S. tax bracket with total assets of $235,000,000. The equity financing makes up $149,577,500 of the firm's total financing package, while the marginal cost of equity is estimated to be 15.74%. The firm just issued a series of bonds in both the European and U.S. markets that are guaranteed to pay bondholders $33.85 in January and July every year for the next 20 years. Can you please tell your new bosses what their firm's cost of capital is currently? ( D ). k k = CD+E (1-1 + - (D+E where D kc weighted average cost of capital amount of the firm's debt kal b efore-tax cost of its debt m .corporate tax rate- Emmmfirm's equity ke .cost of financing with equity
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