Question
Canyon Buff Corp. has 20 million shares outstanding trading for $10 per share. In addition, Canyon Buff has $100 million in outstanding debt. Suppose Canyon
Canyon Buff Corp. has 20 million shares outstanding trading for $10 per share. In addition, Canyon Buff has $100 million in outstanding debt. Suppose Canyon Buffs equity cost of capital is 15%, its debt cost of capital is 8%, and the corporate tax rate is 40%. Then Canyon Buffs weighted average cost of capital is ____%.
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Case Studies In Finance
Authors: Robert Bruner, Kenneth Eades, Michael Schill
6th Edition
0073382450, 978-0073382456
