Question
A company has $2 million in debt and $3 million in equity. The debt has a 5% interest rate and the equity has a expected
A company has $2 million in debt and $3 million in equity. The debt has a 5% interest rate and the equity has a expected return of 12%. What is the company's weighted average cost of capital (WACC)?
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Financial Management Theory and Practice
Authors: Eugene F. Brigham, Michael C. Ehrhardt
15th edition
130563229X, 978-1305632301, 1305632303, 978-0357685877, 978-1305886902, 1305886909, 978-1305632295
