Question
FINA Corps current WACC is 9%. The current debt-to-equity ratio is .25. Tax rate is 20%. The cost of debt is 4%. FINA is planning
FINA Corps current WACC is 9%. The current debt-to-equity ratio is .25. Tax rate is 20%. The cost of debt is 4%. FINA is planning to change its debt-to-equity ratio to 0.5. What is the new WACC with the new debt-to-equity ratio? (Please answer in decimal format and keep 4 decimal places. No credit will be awarded if your answer is in percentage.)
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Corporate Finance Reader
Authors: Robert W. Kolb
2nd Edition
1878975536, 978-1878975539
