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Calculating Weighted Average Cost of Capital and Economic Value Added (EVA) tax rate of 30 percent. Required: 1. Calculate the after-tax cost of each method
Calculating Weighted Average Cost of Capital and Economic Value Added (EVA) tax rate of 30 percent. Required: 1. Calculate the after-tax cost of each method of financing. Enter your answers as decimal values rounded to three places. For example, 4.36% would be entered as ".044". Mortgage bonds Unsecured bonds Common stock example, .06349 would be rounded to .0635 and entered as "6.35" percent. % Calculate the total dollar amount of capital employed for Ignacio, Inc. $ 3. Calculate economic value added (EVA) for Ignacio, Inc., for last year. If the EVA is negative, enter your answer as a negative amount. $ Is the company creating or destroying wealth? What is the new EVA? In your calculations, round weighted average percentage cost of capital to four decimal places. If the EVA is negative, enter your answer as a negative amount. \$
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