The Abco Co. maintains a debt-equity ratio of 0.70 and has a tax rate of 39 percent.

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The Abco Co. maintains a debt-equity ratio of 0.70 and has a tax rate of 39 percent. The firm does not issue preferred stock. The cost of equity is 12 percent and the after-tax cost of debt is 5 percent. What is Abco's weighted average cost of capital?

Posted Date: May 17, 2024 05:05 PM

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