Question
Take It All Away has a cost of equity of 11.05 percent, a pretax cost of debt of 5.40 percent, and a tax rate of
Take It All Away has a cost of equity of 11.05 percent, a pretax cost of debt of 5.40 percent, and a tax rate of 35 percent. The company's capital structure consists of 69 percent debt on a book value basis, but debt is 35 percent of the company's value on a market value basis. What is the company's WACC?
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Finance For Executives Managing For Value Creation
Authors: Gabriel Hawawini, Claude Viallet
7th Edition
1473778913, 978-1473778917
