Question
Cayuga Corps current bonds yield 6%. Its cost of equity is 12%. Corporate tax rate 30%. The companys target capital structure is 40% debt and
Cayuga Corps current bonds yield 6%. Its cost of equity is 12%. Corporate tax rate 30%. The companys target capital structure is 40% debt and 60% equity. What is the companys WACC?
Group of answer choices
(A) 7.32%
(B) 8.88%
(C) 9.15%
(D) 9.33%
(E) 9.60%
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Finance And Control For Construction
Authors: Chris March
1st Edition
0415371155, 978-0415371155
