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(b) Consider the same problem except that now the firm pays only 9% corporate tax rate. Calculate the weighted average cost of capital for
(b) Consider the same problem except that now the firm pays only 9% corporate tax rate. Calculate the weighted average cost of capital for KLM Corporation under the three separate capital structures, i.e. Current, Mix 1 and Mix 2. Write your answers up to 4 decimal places of accuracy, e.g. 15.6789% is good, whereas 15.68% is not. Current Weighted average cost of capital (rwacc) Capital Structure Financing Mix 1 Financing Mix 2 i. Which of the three capital structures provides an optimal financing mix: ii. What is the WACC at the optimal capital structure?
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