Question
The school of business tells you the WACC for Realty Assist Inc. is 14%, with the before-tax cost of debt of 10.77%. The school also
The school of business tells you the WACC for Realty Assist Inc. is 14%, with the before-tax cost of debt of 10.77%. The school also tells you the required return on equity is 18%.
You've found that the tax rate is 21%, then what proportion of a firm is equity financed?
| 70.26% | ||
| 54.00% | ||
| 77.78% | ||
| 57.86% |
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Principles Of Commercial Real Estate Finance
Authors: Gail Ramshaw, Mortgage Bank
1st Edition
0793157099, 9780793157099
