Question
please solve it quick, thank you!!! #####Your companys debt-to-equity ratio is 1.2. Your company does not use preferred stocks. The cost of equity is 8.6%.
please solve it quick, thank you!!!
#####Your companys debt-to-equity ratio is 1.2.
Your company does not use preferred stocks.
The cost of equity is 8.6%.
The pretax cost of debt is 6.3%.
The tax rate is 25%.
What is the weighted average cost of capital of your company?
| A. | 8.92% | |
| B. | 7.48% | |
| C. | 5.83% | |
| D. | 6.49% |
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Quantitative Trading
Authors: Ernest P. Chan
2nd Edition
1119800064, 978-1119800064
