Question
Take It All Away has a cost of equity of 10.87 percent, a pretax cost of debt of 5.49 percent, and a tax rate of
Take It All Away has a cost of equity of 10.87 percent, a pretax cost of debt of 5.49 percent, and a tax rate of 25 percent. The company's capital structure consists of 75 percent debt on a book value basis, but debt is 39 percent of the company's value on a market value basis. What is the company's WACC?
8.77 % 8.39% 8.24% 9.36% 11.19%
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Build An Online Retail System For Under $150
Authors: Roger Butterworth
1st Edition
1530170044, 978-1530170043
