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A company has determined that its optimal capital structure consists of 40 percent debt and 60 percent equity. Given the following information, calculate the firm's
A company has determined that its optimal capital structure consists of 40 percent debt and 60 percent equity. Given the following information, calculate the firm's weighted average cost of capital. rd = 6%, Tax rate = 40%, P0 = $25, Growth = 0%, D0 = $2.00.
Question 1 options:
|
| 6.0% |
|
| 6.2% |
|
| 7.0% |
|
| 7.2% |
|
| 8.0% |
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