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Adjusted WACC. Lewis runs an outdoor adventure company and wants to know what effect a tax change will have on his company's WACC. Currently, Lewis
Adjusted WACC. Lewis runs an outdoor adventure company and wants to know what effect a tax change will have on his company's WACC. Currently, Lewis has the following financing pattern: Equity: 27% and cost of 20.25% Preferred stock: 12% and cost of 13.83% Debt: 61% and cost of 12.4% before taxes What is the adjusted WACC for Lewis if the tax rate is a. 35%? b. 25%? c. 20%? d. 5%? e. 0%? a. What is the adjusted WACC for Lewis if the tax rate is 35%? % (Round to two decimal places.) b. What is the adjusted WACC for Lewis if the tax rate is 25%? |% (Round to two decimal places.) c. What is the adjusted WACC for Lewis if the tax rate is 20%? % (Round to two decimal places.) d. What is the adjusted WACC for Lewis if the tax rate is 5%? |% (Round to two decimal places.) e. What is the adjusted WACC for Lewis if the tax rate is 0%? % (Round to two decimal places.)
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