Question
ABC Corporation has a target capital structure of 60% debt and 40% equity. ABC Corporation has estimated its cost of debt (rd) is 6%, and
ABC Corporation has a target capital structure of 60% debt and 40% equity. ABC Corporation has estimated its cost of debt (rd) is 6%, and its Cost of Equtity (rs) is 11%. ABC Corporation has a tax rate of 35%.
What is ABC Corporation's Weighted Average Cost of Capital (WACC)?
ABC Corporation's Weighted Average Cost of Capital WACC is:
Round to two decimal points.
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker
3rd Edition
076377894X, 978-0763778941
