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In the previous year, the management of golden company re evaluated its companies weighted average cost of capital (WACC) following a significant issue of debt.
In the previous year, the management of golden company re evaluated its companies weighted average cost of capital (WACC) following a significant issue of debt. The company now has financed 40% if its assets using debt and 60% using equity. A. Calculate golden companies weighted average cost of capital where its borrowing rate on debt is 6%, it faces a 40% tax rate and the common stockholder require an 15% rate if return B. Based on the answer in part A, proposed your analysis to the man
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