Question
A firm's debt sells for 15 million and equity for 45 million. The firms before tax cost of debt is 8%. Its cost of equity
A firm's debt sells for 15 million and equity for 45 million. The firms before tax cost of debt is 8%. Its cost of equity is 16.8%. The corporate tax rate is 30%. What is the weighted average cost of capital?
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
13th Edition
1337395080, 9781337395083
