Question
A company finances its operations with 30 percent debt and 70 percent equity. Its net income is $120 million. The required rate of return on
A company finances its operations with 30 percent debt and 70 percent equity. Its net income is $120 million. The required rate of return on companys debt is 9% and the cost of equity is 13%. The companys tax rate is 35 percent. What is the companys WACC?
| 10.85%
| ||
| 9.42%
| ||
| 26.5%
| ||
|
1.085% |
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Real Estate Finance And Investments
Authors: William Brueggeman, Jeffrey Fisher
16th Edition
1259919684, 978-1259919688
