Question
Lannister Manufacturing has a target debt-equity ratio of 0.66. Its cost of equity is 16 percent, and its cost of debt is 11 percent. If
Lannister Manufacturing has a target debt-equity ratio of 0.66. Its cost of equity is 16 percent, and its cost of debt is 11 percent. If the tax rate is 32 percent, what is the company's WACC?
13.24%
12.61%
10.87%
11.98%
10.38%
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International Financial Reporting And Analysis
Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn
8th Edition
978-1473766853, 1473766850
