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The Patrick Company's year-end balance sheet is shown below. Its cost of common equity is 14.40%, its before-tax cost of debt is 6.40%, and its
The Patrick Company's year-end balance sheet is shown below. Its cost of common equity is 14.40%, its before-tax cost of debt is 6.40%, and its marginal tax rate is 35.00%. Assume that the firm's long-term debt sells at par value. The firm has 1,140 shares of common stock outstanding that sell for $6.40 per share. Calculate Patrick's WACC using market value weights. 9.044% 10.216% 10.400% 10.304% 11.200% The Patrick Company's year-end balance sheet is shown below. Its cost of common equity is 14.40%, its before-tax cost of debt is 6.40%, and its marginal tax rate is 35.00%. Assume that the firm's long-term debt sells at par value. The firm has 1,140 shares of common stock outstanding that sell for $6.40 per share. Calculate Patrick's WACC using market value weights. 9.044% 10.216% 10.400% 10.304% 11.200%
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