Question
Sask Inc.'s cost of equity is 11%. The before-tax cost of debt is 5.50%, and the tax rate is 22%. The target capital structure consists
Sask Inc.'s cost of equity is 11%. The before-tax cost of debt is 5.50%, and the tax rate is 22%. The target capital structure consists of 40% debt and 60% common equity. What is the companys WACC if all equity is from retained earnings?
| 8.20% | ||
| 8.32% | ||
| 7.72% | ||
| 8.92% |
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Introduction To Finance
Authors: Lawrence J Gitman, Jeff Madura
1st Edition
0201635372, 9780201635379
