Question
The corporate tax rate is zero. The company has $1,020,000 of assets and $799,000 of debt. The rate of return on the debt is 15.80%.
The corporate tax rate is zero. The company has $1,020,000 of assets and $799,000 of debt. The rate of return on the debt is 15.80%. The rate of return on the equity is 22.10%. The company has no preferred shares. What is the company's weighted average cost of capital (wacc)?
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
