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Market Price $30 $110 $955 Outstanding units 1120,000 10,000 6,000 Book value 3,000,000 1,000,000 6,000,000 Cost of capital 15.00% 12.00% 9.0% Clark Explorers, Inc., an
Market Price | $30 | $110 | $955 |
Outstanding units | 1120,000 | 10,000 | 6,000 |
Book value | 3,000,000 | 1,000,000 | 6,000,000 |
Cost of capital | 15.00% | 12.00% | 9.0%
|
Clark Explorers, Inc., an engineering firm, has the following capital structure:
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. Using market value and book value (separately, of course), find the adjusted WACC for Clark Explorers at the following tax rates:a.
35%
b.
25%
c.
15%
d.
5%
a.What is the market value adjusted WACC for Clark Explorers at a tax rate of
35%?
nothing%
(Round to two decimal places.)
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