Question
A firm has an equity ratio of 0.72. Assuming the cost of equity is 9%, the cost of debt is 4%, and the company tax
A firm has an equity ratio of 0.72. Assuming the cost of equity is 9%, the cost of debt is 4%, and the company tax rate is 30%, then what is the firm's WACC?
a) 11.8%
b) 7.264%
c) 8.488%
d) 4.536%
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Financial Management Principles And Practice
Authors: Timothy J. Gallagher, Joseph D. Andrew
3rd Edition
0131768824, 978-0131768826
