Question
A company has a weighted average cost of capital of 9.5 %. The company's cost of equity is 15.5% , and its pre-tax cost of
A company has a weighted average cost of capital of 9.5 %. The company's cost of equity is 15.5% , and its pre-tax cost of debt it is 8.5 percent. The tax rate is 34 %
What is the company's target debt-equity ratio?
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Financial Management for Public, Health and Not-for-Profit Organizations
Authors: Steven A. Finkler, Daniel L. Smith, Thad D. Calabrese, Robert M. Purtell
5th edition
1506326846, 9781506326863, 1506326862, 978-1506326849
