Question
Problem 12-10 Taxes and WACC [LO 3] Benjamin Manufacturing has a target debt-equity ratio of .45. Its cost of equity is 12 percent, and its
Problem 12-10 Taxes and WACC [LO 3]
| Benjamin Manufacturing has a target debt-equity ratio of .45. Its cost of equity is 12 percent, and its cost of debt is 7 percent. |
| Required: |
| If the tax rate is 35 percent, what is the companys WACC? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).) |
| WACC | % |
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The Oxford Handbook Of IPOs
Authors: Douglas Cumming, Sofia Johan
1st Edition
0190614579, 978-0190614577
