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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: 41% and cost of 20.26% Preferred stock: 18% and cost of 14.25% Debt: 41% and cost of 12.7% before taxes What is the adjusted WACC for Lewis if the tax rate is a. 40% ? b. 30% ? c. 15% ? d. 10% ? e. 0% ? a. What is the adjusted WACC for Lewis if the tax rate is 40% ? % (Round to two decimal places.)
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