Question
Supreme has total assets at market value of $100,000 and is 30% debt financed. It's interest rate on debt is 8% and the corporate tax
Supreme has total assets at market value of $100,000 and is 30% debt financed. It's interest rate on debt is 8% and the corporate tax rate is 25%. The company's cost of equity capital is 14%. What is the company's unlevered cost of equity and what is its WACC?
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
