Question
A firm has $40 million of debt and $60 million of equity. Debt cost 8% and equity cost 15%. The firm as a tax rate
A firm has $40 million of debt and $60 million of equity. Debt cost 8% and equity cost 15%. The firm as a tax rate of 20%.
Group of answer choices
After cost of debt is 6.4%.
The firm has 40% debt and 60% equity.
The weighted average cost of capital is 10.70%.
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How To Read A Financial Report Wringing Vital Signs Out Of The Numbers
Authors: John A. Tracy , Tage C. Tracy
9th Edition
1119606462,1119606489
