Question
Evans Technology has the following capital structure. Debt.......................... 30% Common equity....... 70 The aftertax cost of debt is 6 percent; and the cost of common
Evans Technology has the following capital structure.
Debt.......................... 30%
Common equity....... 70
The aftertax cost of debt is 6 percent; and the cost of common equity (in the form of retained earnings) is 11 percent.
What is the firms weighted average cost of capital?
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Money Banking And Financial Markets
Authors: Stephen Cecchetti, Kermit Schoenholtz
3rd Edition
007337590X, 9780073375908
