Question
ABC, Inc.'s target debt-to-equity ratio of 0.36, with an equity beta of 1.18, and a cost of equity of 11.74 percent. The market rate of
ABC, Inc.'s target debt-to-equity ratio of 0.36, with an equity beta of 1.18, and a cost of equity of 11.74 percent. The market rate of return is 10.4 percent, and the tax rate is 35 percent. What is the company's WACC if the pretax cost of debt is 6.9 percent?
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Dynamic Asset Allocation With Forwards And Futures
Authors: Abraham Lioui , Patrice Poncet
1st Edition
0387241078,038724106X
