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My Sister's company's required return on debt is 4.5%, and her tax rate is 20%, plus there is a required return on equity is 9%.
My Sister's company's required return on debt is 4.5%, and her tax rate is 20%, plus there is a required return on equity is 9%. If the company has 20 billion dollars of debt and has a book equity is 10 billion dollars, and if the stock price is 30 dollars a share and the company has 2 billion shares outstanding, can you help make the company's WACC?
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Solution WACC is calculated using the following formula WACC Weighted Average Cost of Debt x 1 Tax R...
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Financial Accounting A User Perspective
Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry
6th Canadian Edition
470676604, 978-0470676608
