Question
A company has only two type of capital : debt and equity. It has a target debt-equity ratio of 1.1 . Its cost of equity
A company has only two type of capital : debt and equity. It has a target debt-equity ratio of 1.1 . Its cost of equity is 9% , and its cost of debt is 7%. If the tax rate is 38% , what is the company s WACC? (Enter your answers a percent rounded to 2 decimal places, leave out % sign, for example, for answer 0.43%, enter 0.43 only)
Step by Step Solution
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Step: 1
To calculate the Weighted Average Cost of Capital WACC we can use the following formula WAC...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
