Question
Cooper and Cooper (CAP) has an unlevered cost of capital of 12%; a target debt to value ratio of 0.25; a debt cost of capital
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Cooper and Cooper (CAP) has an unlevered cost of capital of 12%; a target debt to value ratio of 0.25; a debt cost of capital of 8% and a corporate tax rate of 25%. Please estimate CAP's rwacc
a. 11.50%
b. 10.00%
c. 11.00%
d. 12.50%
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Business Analysis And Valuation Using Financial Statements
Authors: Krishna G Palepu, Paul M Healy
4th Edition
032430286X, 9780324302868
