Question
A firm has an effective (after-tax) cost of debt of 3%, and its weight of debt is 40%. Its equity cost of capital is 9%,
A firm has an effective (after-tax) cost of debt of 3%, and its weight of debt is 40%. Its equity cost of capital is 9%, and its weight of equity is 60%. Calculate the firm's weighted average cost of capital (WACC). [Enter your answer as a percentage rounded to two decimal places.]
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AQA AS Accounting Unit 1 Introduction To Financial Accounting
Authors: Brendan Casey
1st Edition
1499789653, 978-1499789652
