Question
Consider a firm that has 22% of debt. The rate of return for debt is 9% and the rate of return for equity is 11%.
Consider a firm that has 22% of debt. The rate of return for debt is 9% and the rate of return for equity is 11%. The corporate tax rate is 32%. What is the weighted average cost of capital? Enter your answer as a percentage and rounded to 2 DECIMAL PLACES. Do not include the percentage sign in your answer.
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Principles Of Financial Management
Authors: Haim Levy, Marshall Sarnat
1st Edition
0137097751, 978-0137097753
