Question
Suppose that TapDance, Inc.s capital structure features 65 percent equity, 35 percent debt, and that its before-tax cost of debt is 6 percent, while its
Suppose that TapDance, Inc.s capital structure features 65 percent equity, 35 percent debt, and that its before-tax cost of debt is 6 percent, while its cost of equity is 11 percent. Assume the appropriate weighted average tax rate is 34 percent.
What will be TapDances WACC? (Round your answer to 2 decimal places.)
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Property Finance
Authors: Giacomo Morri, Antonio Mazza
1st Edition
1118764404, 978-1118764404
