Question
Assume that XYZ Corporation is a leveraged company with the following information: Cost of equity capital for XYZ = 13%; Before-tax borrowing cost = 8%;
Assume that XYZ Corporation is a leveraged company with the following information: Cost of equity capital for XYZ = 13%; Before-tax borrowing cost = 8%; Marginal corporate income tax rate = 30%. Calculate the debt-to-equity ratio that would result in XYZ having a weighted average cost of capital of 8.56%
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Legal Aspects Of Trade Finance
Authors: Charles Chatterjee
1st Edition
1857433890, 978-1857433890
