Question
Appraisal, Inc., has a target debtequity ratio of .45. Its cost of equity is 14 percent, and its cost of debt is 5 percent. If
Appraisal, Inc., has a target debtequity ratio of .45. Its cost of equity is 14 percent, and its cost of debt is 5 percent. If the tax rate is 40 percent, what is the companys WACC? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
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Fundamentals of Investments Valuation and Management
Authors: Bradford D. Jordan, Thomas W. Miller
5th edition
978-007728329, 9780073382357, 0077283295, 73382353, 978-0077283292
