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If a firm has a weighted-average cost of capital (WACC) of 6.116%, a required return on debt of 5.648% and a required return on equity
If a firm has a weighted-average cost of capital (WACC) of 6.116%, a required return on debt of 5.648% and a required return on equity of 15.561%, what proportion of the firm's capital structure is equity if the firm pays 22% in taxes? Assume no preferred stock. Enter your answer as a decimal, e.g. 0.3456 for 34.56%, not 34.56. Need to know how to solve
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