Question
A particular company has a target capital structure of 60% common stock and 40% debt. Its cost of equity is 12%, the pre-tax cost of
A particular company has a target capital structure of 60% common stock and 40% debt. Its cost of equity is 12%, the pre-tax cost of debt is 7%, and the relevant tax base is 35%. What is this company's WACC?
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A First Course in Quantitative Finance
Authors: Thomas Mazzoni
1st edition
9781108411431, 978-1108419574
