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For ABX company: Debt is $1,000,000, Equity is $575,000, How to calculate the WACC? Rate of Return 6.50% Growth 4% Tax Rate 25% Depreciation 10
| Rate of Return | 6.50% |
| Growth | 4% |
| Tax Rate | 25% |
| Depreciation | 10 Year Straight line |
| Initial Investment | $ 1,500,000.00 |
| Bank Loan | $ 1,000,000.00 |
| Interest Rate | 7.02% |
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There are 3 Steps involved in it
Step: 1
The Weighted Average Cost of Capital WACC is calculated using the following formula ...
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Income Tax Fundamentals 2013
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
31st Edition
1111972516, 978-1285586618, 1285586611, 978-1285613109, 978-1111972516
