Question
The capital structure of Hovercar Automotive consists of 60% equity and 40% debt. The required rate of return on its debt is 7.4% and 12.5%
The capital structure of Hovercar Automotive consists of 60% equity and 40% debt. The required rate of return on its debt is 7.4% and 12.5% on its equity. If the tax rate is 22%, what is Hovercar's weighted-average cost of capital (WACC)?
Answer Format: Positive percentage rounded to 2 decimal places.
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Business Analysis And Valuation Using Financial Statements Text And Cases
Authors: Krishna G. Palepu, Paul M. Healy, Victor Lewis Bernard, W.Gordon Filby
2nd Edition
0324015658, 9780324015652
