tulloch

Tulloch Manufacturing has a target debt-equity ratio of 61 which indicates that they have $.61 of debt for each $1.00 of equity. Its cost of equity is 13.4 percent, and its pretax cost of debt is 8.4 percent. If the tax is 40 percent, compute the following: The weight (percent) of debt is: The weight (percent) of equity is: The aftertax cost of debt is: The WACC is