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The following data pertains to Michalko Corp. Use this information to complete Questions 13 17. Michalko Corp. Total Assets $14,680 Interest-Bearing Debt $8,124 Average borrowing
The following data pertains to Michalko Corp.
Use this information to complete Questions 13 17.
Michalko Corp. | |
Total Assets | $14,680 |
Interest-Bearing Debt | $8,124 |
Average borrowing rate for debt | 11.5% |
Common Equity: |
|
Book Value | $5,120 |
Market Value | $25,700 |
Marginal Income Tax Rate | 37% |
Market Equity Beta | 1.44 |
|
- Determine the weight on debt capital that should be used to calculate Michalko's weighted-average cost of capital:
76.0% 24.0% 50% 61.3%
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