Question
Alaskan Markets has a target capital structure of 50 percent debt and 50 percent equity. The the tax rate is 40 percent, and the cost
Alaskan Markets has a target capital structure of 50 percent debt and 50 percent equity. The the tax rate is 40 percent, and the cost of equity is 10 percent. If the WACC is 8 percent, find the pretax cost of debt?
Group of answer choices
18%
16%
12%
10%
14%
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Startup CFO The Finance Handbook For Your Growing Business
Authors: Kyle Brennan
1st Edition
1790959403, 978-1790959402
