Question
Suppose that TapDance, Inc.'s, capital structure features 70 percent equity, 30 percent debt, and that its before-tax cost of debt is 9 percent, while its
Suppose that TapDance, Inc.'s, capital structure features 70 percent equity, 30 percent debt, and that its before-tax cost of debt is 9 percent, while its cost of equity is 14 percent. Assume the appropriate weighted average tax rate is 34 percent.
What will be TapDance's WACC? (Round your answer to 2 decimal places.)
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Financial Management Core Concepts
Authors: Raymond Brooks
4th Edition
134730417, 134730410, 978-0134730417
