Question
Q8. Your company's beta is 1.5 and market is 9%. In the same time treasury bill return is 4%. You have $300,000 Equity in the
Q8. Your company's beta is 1.5 and market is 9%. In the same time treasury bill return is 4%. You have $300,000 Equity in the firm. You have $200,000 debt in your firm. The before tax cost of debt is 6%. The average tax rate is 40%. What is weighted average cost of capital of your firm?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
