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Problem 16-12 Calculating WACC [LO1] Solar Industries has a debt-equity ratio of 1.4. Its WACC is 8.4 percent, and its cost of debt is 6.1
Problem 16-12 Calculating WACC [LO1]
Solar Industries has a debt-equity ratio of 1.4. Its WACC is 8.4 percent, and its cost of debt is 6.1 percent. The corporate tax rate is 21 percent. |
a. | What is the companys cost of equity capital? | ||
b. | What is the companys unlevered cost of equity capital?
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