Question
The ABC Company has a cost of equity of 25.41 percent, a before-tax cost of debt of 5.36 percent, and a tax rate of 22
The ABC Company has a cost of equity of 25.41 percent, a before-tax cost of debt of 5.36 percent, and a tax rate of 22 percent. What is the firms weighted average cost of capital if the proportion of debt is 28%?
Note: Enter your answer rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0.12345 then enter as 12.35 in the answer box.
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The New Managed Account Solutions Handbook
Authors: Stephen D. Gresham, Arlen S. Oransky
1st Edition
0470222786, 978-0470222782
