Question
A firm is financed with 30% risk-free debt and 70% equity. The risk-free rate is 5%, the firm's cost of equity capital is 15%, and
A firm is financed with 30% risk-free debt and 70% equity. The risk-free rate is 5%, the firm's cost of equity capital is 15%, and the firm's marginal tax rate is 35%. What is the firm's weighted average cost of capital?
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Public Finance
Authors: Harvey Rosen, Robert Guell, Ted Gayer
9th Edition
0073511358, 9780073511351
