Question
Bolero Corporation has one long term loan (interest bearing debt) of $700,000 at an interest rate of 8%. The company has accounts payable of $300,000
Bolero Corporation has one long term loan (interest bearing debt) of $700,000 at an interest rate of 8%. The company has accounts payable of $300,000 (non-interest bearing) and equity of $1,000,000. It estimates that its cost of equity is 16%. Its tax rate is 35%.
- What is the companys weighted average cost of capital on interest bearing debt and equity?
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Accounting For Non-Accountants
Authors: David Horner
10th Edition
0749472812, 978-0749472818
