Question
Eaglet Corporation has the following target and costs associated with its capital structure. Based on these parameters what is Eaglet Corporations weighted average cost of
Eaglet Corporation has the following target and costs associated with its capital structure. Based on these parameters what is Eaglet Corporations weighted average cost of capital?
| Target common equity weight: | 60 percent |
| Target debt weight: | 40 percent |
| Cost of equity: | 13 percent |
| Cost of debt: | 6 percent |
| Tax rate: | 35 percent |
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Cases in Finance
Authors: Jim DeMello
3rd edition
1259330476, 1259330478, 9781259352652 , 978-1259330476
