Question
The company's cost of equity is 9.65% and its cost of debt is 7.50%. The tax rate is 35% and the WACC is 8.54%. 1)
The company's cost of equity is 9.65% and its cost of debt is 7.50%. The tax rate is 35% and the WACC is 8.54%. 1) What is the weight of debt in capital structure? 2) What is the target debt-equity ratio? 3) What is the weight of equity in capital structure? Please show all steps.
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
6th Edition
0201538997, 978-0201538991
