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Take It All Away has a cost of equity of 10.57 percent, a pretax cost of debt of 5.29 percent, and a tax rate of
Take It All Away has a cost of equity of 10.57 percent, a pretax cost of debt of 5.29 percent, and a tax rate of 21 percent. The company's capital structure consists of 69 percent debt on a book value basis, but debt is 29 percent of the company's value on a market value basis. What is the company's WACC?
Multiple Choice
a)7.30%
b)8.72%
c)11.96%
d)9.04%
e)9.64%
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