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please show equations in cells, NOT just answers Using the weights calculated in Q3, and the costs of capital in Q4, Q5, and Q6 compute
please show equations in cells, NOT just answers
Using the weights calculated in Q3, and the costs of capital in Q4, Q5, and Q6 | ||||
compute the WACC for Consolidated Wheels and Axles Inc. |
Compute the weighted average cost of capital using the information below: | ||||
The effective marginal tax rate is 20% | ||||
Weight | Cost (Rate) | |||
short term debt, not recurring | 0.10 | 7.9% | ||
short term debt, recurring | 0.15 | 7.5% | ||
long term debt | 0.20 | 7.0% | ||
preferred stock | 0.10 | 9.0% | ||
common equity | 0.55 | 11.5% |
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