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A tutor that knows how to solve these please and thank you! CoffeeCarts has a cost of equity of 15.6%, has an effective cost of
A tutor that knows how to solve these please and thank you!
CoffeeCarts has a cost of equity of 15.6%, has an effective cost of debt of 3.8%, and is financed 70% with equity and 30% with debt. What is this firm's WACC? CoffeeCarts's WACC is %. (Round to one decimal place.) Laurel, Inc., has debt outstanding with a coupon rate of 5.8% and a yield to maturity of 7.1%. Its tax rate is 35%. What is Laurel's effective (after-tax) cost of debt? NOTE: Assume that the debt has annual coupons Note: Assume that the firm will always be able to utilize its full interest tax shield. The effective after-tax cost of debt is %. (Round to four decimal places.) Step by Step Solution
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