Question
I do not understand how they arrived at 14.9% in Question #3 of the document. They use this equation: WACC = [(1-40%)*25%*6.8%] + [75%*(5% +
I do not understand how they arrived at 14.9% in Question #3 of the document.
They use this equation: WACC = [(1-40%)*25%*6.8%] + [75%*(5% + 18.5%*7.2%)] = 14.9%
It does not yield 14.9%. Where did they get that discount factor?
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Essentials of Managerial Finance
Authors: Scott Besley, Eugene F. Brigham
14th edition
324422709, 324422702, 978-0324422702
