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Santas Workshops Inc. has a debt-equity ratio of 1.2. Its WACC is 11.3%. Its tax rate is 34%. If Santas cost of equity is 18%,
- Santas Workshops Inc. has a debt-equity ratio of 1.2. Its WACC is 11.3%. Its tax rate is 34%.
- If Santas cost of equity is 18%, what is the pre-tax cost of debt?
- On the other hand and ignoring (a), suppose you had known that the after tax cost of debt was 7.5%, what is the cost of equity?
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Airline Finance
Authors: Peter S. Morrell
4th Edition
1351959743, 978-1351959742
