Question
Suppose that your firm has a cost of equity of 16% and a cost of debt of 7%. If the target debt/equity ratio is 0.80,
Suppose that your firm has a cost of equity of 16% and a cost of debt of 7%. If the target debt/equity ratio is 0.80, and the tax rate is 35%, what is the firm's weighted average cost of capital (WACC)?
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Essentials Of Corporate Finance
Authors: Stephen A. Ross, Randolph W. Westerfield, Bradford D. Jordan
9th International Edition
1259254801, 9781259254802
