Question
The following information relates to the Falcon Division of Xenon Enterprises: Interest rate on debt capital 6 % Cost of equity capital 10 % Market
The following information relates to the Falcon Division of Xenon Enterprises:
Interest rate on debt capital 6 %
Cost of equity capital 10 %
Market value of debt capital $ 59 million
Market value of equity capital $ 89 million
Income tax rate 30 %
On the basis of this information, Falcons weighted-average cost of capital is closest to:
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Cost Accounting A Managerial Emphasis
Authors: Charles T Horngren
5th Edition
0131796712, 978-0131796713
