Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Tuckahoe Funland Inc. has a weighted average cost of capital of 8 . 3 percent. The company's cost of equity is 1 1 . 9

Tuckahoe Funland Inc. has a weighted average cost of capital of 8.3 percent. The company's cost of equity is 11.9 percent, and its cost of debt is 6.5 percent. The tax rate is 23 percent. What is the company's debt-equity ratio? (Do not round intermediate calculations and round your answer to 4 decimal places, e.g.,32.1616.)
FILL IN YOUR ANSWER WITH A COMMA FOR THOUSANDS, MILLIONS ETC AND A DOT FOR DECIMALS, do not fill in any currency sign (\(\$,\) etc). So for instance, One-million-one-hundred-thousand-andfourty euros and 50 cents would be 1,100,040.50. For percentages use a dot and NO \% sign. For instance if you think an answer is seven per cent and 22 hundredths, write 7.22
Required:
Debt-equity ratio
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Contemporary Financial Management

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

10th Edition

978-0324289114, 0324289111

More Books

Students also viewed these Finance questions

Question

Given and find P(AB). If, further, are A and B independent?

Answered: 1 week ago