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Stanley Johnson has a cost of equity of 9.27%, a pre-tax cost of debt of 3.26%, and a tax rate of 21%. Their D/E ratio
Stanley Johnson has a cost of equity of 9.27%, a pre-tax cost of debt of 3.26%, and a tax rate of 21%.
Their D/E ratio is .6.
What is the company's WACC?
They build planes for the Government of Canada.
They are considering using their current WACC as a discount rate, to analyze a bid on an upcoming military contract. Discuss what this means.
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