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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: 29% and cost of 22.11% Preferred stock:21% and cost of 16.41% Debt: 50% and cost of 13.1% before taxes What is the adjusted WACC for Lewis if the tax rate is a. 40%? ______________ b. 30%?______________ c. 15%?________________ d. 5%?________________ e. 0%?_________________
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