Question
The following 2022 information is available for Knight Ltd: Cost of debt before tax 10.9 % Cost of equity 11.1 % Market value of debt
The following 2022 information is available for Knight Ltd:
| Cost of debt before tax |
| 10.9 | % |
| Cost of equity |
| 11.1 | % |
| Market value of debt | $ | 5035909 |
|
| Market value of equity | $ | 4016546 |
|
| Tax rate |
| 32 | % |
The weighted average cost of capital (WACC) for Knight is __________. (Present the final answer as a percentage, to 2 decimal places.)
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Government and Not for Profit Accounting Concepts and Practices
Authors: Michael Granof, Saleha Khumawala, Thad Calabrese, Daniel Smith
7th edition
1118983270, 978-1119175025, 111917502X, 978-1119175001, 978-1118983270
