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How did they come up with this answer? We can now use the weighted average cost of capital equation to find the cost of
How did they come up with this answer?
" We can now use the weighted average cost of capital equation to find the cost of equity, which is:"
.10 = (.7403)(1-.24)(.06)+(.2597)(Rs)
Rs = .2550 or 25.50%
The answer is to solve for Rs, I just dont know how to set it up so that my answer matches the .2550
I've been trying to multiply the first three numbers and add the .2597 but how do I get Rs on the other side and what do I do with the .10? I just cant think
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