Question
Rainbow in the Dark Manufacturing has a target debt-equity ratio of 0.65. Its cost of equity is 14.0 percent, and its cost of debt is
Rainbow in the Dark Manufacturing has a target debt-equity ratio of 0.65. Its cost of equity is 14.0 percent, and its cost of debt is 9.0 percent. Required: If the tax rate is 39 percent, what is the companys WACC? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).) WACC: %
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
16th Edition
013749601X, 978-0137496013
