Question
ABC Company has an after-tax cost of debt of 6 percent, beta of .85, tax rate of 35 percent, and a target capital structure of
ABC Company has an after-tax cost of debt of 6 percent, beta of .85, tax rate of 35 percent, and a target capital structure of 60 percent equity and 40 percent debt. Ten year Treasury securities are yielding 4 percent and the risk premium for ABC is 5.1 percent. What is ABCs WACC?
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Auditing Investments
Authors: Barbara Davison
1st Edition
0894134272, 978-0894134272
