Question
Brannan Manufacturing has a target debt-equity ratio of .30. Its cost of equity is 12.5 percent, and its pretax cost of debt is 7.2 percent.
Brannan Manufacturing has a target debt-equity ratio of .30. Its cost of equity is 12.5 percent, and its pretax cost of debt is 7.2 percent. If the tax rate is 25 percent, what is the companys WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
WACC- ____%
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Economics For Financial Markets
Authors: Brian Kettell
1st Edition
0750653841, 978-0750653848
