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please show work if possible. Thanks! Question 4 3 pts The weighted average cost of capital for a firm with a 65/35 debt/equity split, 7%
please show work if possible.
Thanks!
Question 4 3 pts The weighted average cost of capital for a firm with a 65/35 debt/equity split, 7% pre-tax cost of debt, 14% cost of equity, and a 35% tax rate would be: Enter as a percentage, round to two decimal places. Question 5 3 pts Company X has 2 million shares of common stock outstanding at a book value of $2 per share. The stock trades for $5 per share. It also has $2 million in face value of debt that trades at 94% of par. What is the weight of debt for WACC purposes? Enter as a percentage, round to two decimal placesStep by Step Solution
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