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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 27.50 percent.
- If the company's total equity is $2,500,000, how much is the target total liabilities? (Round to the nearest dollar).Case sensitive. E.g., type in your answer in this format 1,000,000 for $1,000,000.
- How much is after-tax cost of equity?Casesensitive. E.g., type in your answer in this format 2.00 for 2.
- How much is the after-tax cost of debt?Casesensitive. E.g., type in your answer in this format 2.00 for 2.
- What is the company's WACC?Casesensitive. E.g., type in your answer in this format 2.00 for 2.
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