Question
Consider a company that has the following values: Cost of equity 17.6% Cost of debt 9.5% Book value of equity $1,700,000 Book value of debt
Consider a company that has the following values:
Cost of equity 17.6%
Cost of debt 9.5%
Book value of equity $1,700,000
Book value of debt $500,000
Market value of equity $2,319,000
Market value of debt $541,650
using the WACC formula, What is this companys WACC, assuming no taxes?
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
