Question
A company has a debt of $1,000,000 with an interest rate of 8%, and a required return on equity of 12%. The company's tax rate
A company has a debt of $1,000,000 with an interest rate of 8%, and a required return on equity of 12%. The company's tax rate is 30%. If the company's cost of capital is 10%, what is the company's weighted average cost of capital (WACC)?
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Financial Theory and Corporate Policy
Authors: Thomas E. Copeland, J. Fred Weston, Kuldeep Shastri
4th edition
321127218, 978-0321179548, 321179544, 978-0321127211
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