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got 0.218 but was wrong don't know where I went wrong. Requirement 4. Speed Auto Company whose tax rate is 35%, has two sources of
got 0.218 but was wrong don't know where I went wrong.
Requirement 4. Speed Auto Company whose tax rate is 35%, has two sources of funds long term debt with a market value of $15,000,000 at an interest rate of 10%, and equity capital ith a market value of $13,000,000 and a cost of equity of 14% Applying the same weighted average cost of capital A C to each division, calculate EVA for each division Begin by determining the formula to calculate WACC ( After tax cost of debt x Market value of debtCost of equity x Market value of equityWACC Market value of debt Market value of equity (Enter the amount as a decimal Round the WACC to five decimal places, in the format X.Xxxxx) The company's WACC isStep by Step Solution
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