Calculate the weighted cost of capital (WACC) for the multinational firm. Multinational firm: Worldwide cost of debt
Fantastic news! We've Found the answer you've been seeking!
Question:
Calculate the weighted cost of capital (WACC) for the multinational firm.
Multinational firm:
Worldwide cost of debt (rd,W)= 2%
Worldwide cost of equity (re,W)= 6%
Worldwide tax rate (tW)= 10%
wd,W= 50% = percentage of debt financing
we,W= 50% = percentage of equity financing
A. 3.9%
B. 4.9%
C. 5.3%
D. 6.8%
Posted Date: