Question
Suppose that TapDance, Inc.'s, capital structure features 60 percent equity, 40 percent debt, and that its before-tax cost of debt is 8 percent, while
Suppose that TapDance, Inc.'s, capital structure features 60 percent equity, 40 percent debt, and that its before-tax cost of debt is 8 percent, while its cost of equity is 13 percent. Assume the appropriate weighted average tax rate is 34 percent. What will be TapDance's WACC? (Round your answer to 2 decimal places.) WACC 10.30 %
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Fundamentals of Investments
Authors: Gordon J. Alexander, William F. Sharpe, Jeffery V. Bailey
3rd edition
132926172, 978-0132926171
