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Dusit is financed 25% by debt yielding 8.4%. Investors require a return of 15.4% on Dusits equity. a. What is the companys weighted-average cost of
Dusit is financed 25% by debt yielding 8.4%. Investors require a return of 15.4% on Dusits equity.
a. What is the companys weighted-average cost of capital if the corporate tax rate is 35%? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Weighted-average cost of capital %
b. What would be the companys cost of capital if it were exempted from corporate tax? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)
Weighted-average cost of capital %
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