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Suppose that TapDance, Incorporateds capital structure features 75 percent equity, 25 percent debt, and that its before-tax cost of debt is 7 percent, while its

Suppose that TapDance, Incorporateds capital structure features 75 percent equity, 25 percent debt, and that its before-tax cost of debt is 7 percent, while its cost of equity is 12 percent. The appropriate weighted average tax rate is 21 percent and TapDance estimates it cannot make any use of the interest tax shield in the foreseeable future. What will be TapDances WACC?

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