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.
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| Required: |
| If the tax rate is 34 percent, what is the companys WACC? (Do not include the percent sign (%). Round your answer to 2 decimal places (e.g., 32.16).)
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Corporate Finance
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
6th International Edition
0071229035, 978-0071229036
