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CA Outerspace Inc. has a cost of equity of 10.81 percent, a pretax cost of debt of 5.45 percent, and a tax rate of 35
CA Outerspace Inc. has a cost of equity of 10.81 percent, a pretax cost of debt of 5.45 percent, and a tax rate of 35 percent. The company's capital structure consists of 77 percent debt on a book value basis, but debt is 37 percent of the company's value on a market value basis. What is the company's WACC?
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8.85%
8.12%
5.21%
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