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Table 14.2. Cost of Capital Projections for Exercise 1 % debt cost of debt after-tax cost of debt (T=25%) % equity cost of equity WACC

Table 14.2. Cost of Capital Projections for Exercise 1

% debt cost of debt after-tax cost of debt (T=25%) % equity cost of equity WACC 0% 6.4% 9.0% 10% 6.4% 9.8% 20% 6.9% 10.4% 30% 7.7% 11.0% 40% 8.4% 12.5% 50% 9.2% 14.4% 60% 10.0% 16.8% 70% 11.5% 19.0% 80% 13.0% 25.0% 90% 18.0% 32.0% 100% 25.0% 47.0%

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