The Black Bird Company plans an expansion. The expansion is to be financed by selling $120 million in new debt and $64 million in new
The Black Bird Company plans an expansion. The expansion is to be financed by selling $120 million in new debt and $64 million in new common stock. The before-tax required rate of return on debt is 10.61% percent and the required rate of return on equity is 14.18% percent. If the company is in the 34 percent tax bracket, what is the weighted average cost of capital?
Round the answer to two decimal places in percentage form. (Write the percentage sign in the "units" box)
Answer:
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Authors: Raghavendra Rau, Robert Wardrop, Luigi Zingales
1st Edition
3030651169, 978-3030651169
