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A firm has a debt-equity ratio of .55 and a tax rate of 35 percent. Its cost of equity is 10.6 percent and its pre-tax
A firm has a debt-equity ratio of .55 and a tax rate of 35 percent. Its cost of equity is 10.6 percent and its pre-tax cost of debt is 8.1 percent. What is the firms WACC?
| a. 8.28 percent |
| b. 8.71 percent |
| c. 9.40 percent |
| d. 9.71 percent |
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Cases in Finance
Authors: Jim DeMello
3rd edition
1259330476, 1259330478, 9781259352652 , 978-1259330476
