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 40 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?
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International Financial Management
Authors: Jeff Madura, Roland Fox
5th Edition
1473770505, 978-1473770508
