Question
Lancelin Manufacturing has a target debt-to-equity ratio of .35. It only has ordinary share for its equity. Its cost of equity is 12 percent, and
Lancelin Manufacturing has a target debt-to-equity ratio of .35. It only has ordinary share for its equity. Its cost of equity is 12 percent, and its pre-tax cost of debt is 6 percent. The tax rate is 30 percent. If Lancelin's total equity is $2,500,000, how much is the company's target total liabilities ? $ . Case sensitive: Input 200,000 for $200,000.12 (round up to the nearest dollar). How much is after-tax cost of equity? %. Case sensitive: Input 20.00 for 20.00%. How much is the after-tax cost of debt? %. Case sensitive: Input 20.00 for 20.00%. What is the companys WACC? %. Case sensitive: Input 20.00 for 20.00%.
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