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Chandeliers Corp. has no debt but can borrow at 6.4 percent. The firms WACC is currently 8.2 percent, and the tax rate is 35 percent.
Chandeliers Corp. has no debt but can borrow at 6.4 percent. The firms WACC is currently 8.2 percent, and the tax rate is 35 percent.
A: If the firm converts to 35 percent debt, what is the companys WACC?(Round your answer to 2 decimal places. (e.g., 32.16))
B: If the firm converts to 50 percent debt, what is the companys WACC?(Round your answer to 2 decimal places. (e.g., 32.16))
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