Question
The Bedford Corp. has debt (D) of $200 million and equity (E) of $500 Million. Its cost of debt (rD) is 5.5%, and its cost
The Bedford Corp. has debt (D) of $200 million and equity (E) of $500 Million. Its cost of debt (rD) is 5.5%, and its cost of equity (rE) is 10.8%. Its corporate tax rate is 35%. What is Bedford's after-tax weighted average cost of capital (WACC)? What is its unleavered WACC?
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International Economics
Authors: Robert Carbaugh
18th Edition
0357518918, 978-0357518915
