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A firm currently has a debt-equity ratio of 0.1. The debt, which is virtually riskless, pays an interest rate of 6 %. The expected rate
A firm currently has a debt-equity ratio of 0.1. The debt, which is virtually riskless, pays an interest rate of 6 %. The expected rate of return on the equity is 13
%. What is the Weighted-Average Cost of Capital if the firm pays no taxes? Enter your answer as a percentage rounded to two decimal places. Do not
include the percentage sign in your answer.
WACC = ________
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The Board Of Directors And Audit Committee Guide To Fiduciary Responsibilities Ten Critical Steps To Protecting Yourself And Your Organization
Authors: Sheila Moran CPA CFE, Ronald Kral CPA CMA
1st Edition
0814431666, 978-0814431665
