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if D/V=50%, S/V=40%, and P/V=10%. Additionally, Kd=10%, Dp=6, Ppn=40, and Rf=6%, market risk premium=10% and beta=1.5. If the tax rate is 30%, then the weighted
if D/V=50%, S/V=40%, and P/V=10%. Additionally, Kd=10%, Dp=6, Ppn=40, and Rf=6%, market risk premium=10% and beta=1.5. If the tax rate is 30%, then the weighted average cost of capital is? A. 14.90% b. 13.40% c. 17% d. 11.60%
Taking into account the data from the previous problem, the leverage ratio of the capital structure is:
a. 1.25 b. 1 c. 5 d. 4
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