Question
The Felix Filter Corp. maintains a debt-equity ratio of .6. The cost of equity for Richardson Corp. is 16%, the cost of debt is 11%
The Felix Filter Corp. maintains a debt-equity ratio of .6. The cost of equity
for Richardson Corp. is 16%, the cost of debt is 11% and the marginal tax
rate is 30%. What is the weighted average cost of capital? (Round your
answer to two decimal places.)
please show work! not excel!
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
16th edition
125927716X, 978-1259687969, 1259687961, 978-1259277160
