Question
The following information is available for Lavender Ltd: Cost of debt before tax 11.1 % Cost of equity 11 % Market value of debt $
The following information is available for Lavender Ltd:
| Cost of debt before tax |
| 11.1 | % |
| Cost of equity |
| 11 | % |
| Market value of debt | $ | 5,049,769 |
|
| Market value of equity | $ | 4,131,814 |
|
| Tax rate |
| 31 | % |
The weighted average cost of capital (WACC) for Lavender is __________. (Present the final answer as a percentage, to 2 decimal places.)
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Accounting And Auditing Research Tools And Strategies
Authors: Thomas R. Weirich, Thomas C. Pearson, Natalie Tatiana Churyk
7th Edition
9780470506974
