Question
A company has a pretax cost of debt of 6.7 percent, a cost of equity of 14.8 percent, and a tax rate of 21 percent.
A company has a pretax cost of debt of 6.7 percent, a cost of equity of 14.8 percent, and a tax rate of 21 percent. What is the firm's weighted average cost of capital if the debt-equity ratio is .47?
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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
