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Question 2: Flight Corporation has the following target and costs associated with its capital structure. Based on these parameters what is Flight Corporations weighted average
Question 2:
Flight Corporation has the following target and costs associated with its capital structure. Based on these parameters what is Flight Corporations weighted average cost of capital?
Target common equity weight:25percent
Target debt weight: 75percent
Cost of equity: 14 percent
Cost of debt:6 percent
Tax rate: 40 percent
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