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please show ALL formulas and reasoning for this question, thank you in advance Prime Inc. has an after-tax WACC of 10.58% (EAR). The companys cost
please show ALL formulas and reasoning for this question, thank you in advance
Prime Inc. has an after-tax WACC of 10.58% (EAR). The companys cost of equity is 13.4% (EAR) and its semi-annual coupon bonds have a yield-to-maturity of 7.8% (APR, semi-annually compounded). The tax rate is 35%. What is Primes debt-to-equity (D/E) ratio?
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