Question
A company has cost of debt (before tax) of 5.5% and cost of equity of 12.8% in addition he company has a target captial structure
A company has cost of debt (before tax) of 5.5% and cost of equity of 12.8% in addition he company has a target captial structure of 30% debt and 70% equity, and marginal income tax rate of 30% given this information, what is the WACC for this company?
A. 10.61%
B. 10.12%
C. 9.33%
D. 7.69%
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Public Finance A Contemporary Application of Theory to Policy
Authors: David N Hyman
11th edition
9781305474253, 1285173953, 1305474252, 978-1285173955
