Question
The corporation has a targeted capital structure of 80% common stock and 20% debt. The cost of equity is 12% and cost of debt is
The corporation has a targeted capital structure of 80% common stock and 20% debt. The cost of equity is 12% and cost of debt is 7%. The tax rate is 30%. What is the company's weighted average cost of capital (WACC)?
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Foundations Of Finance
Authors: Arthur J. Keown, John H. Martin, J. William Petty
10th Edition
0135160618, 978-0135160619
