Question
WACC = Weighted Cost of Equity + Weighted Cost of debt*(1-tax rate) (7.69%*37%)+(6.79%*63%)*(1-20%) = 6.27% Recalculate the market value WACC, but now assume that Tesla
WACC = Weighted Cost of Equity + Weighted Cost of debt*(1-tax rate)
(7.69%*37%)+(6.79%*63%)*(1-20%) = 6.27%
Recalculate the market value WACC, but now assume that Tesla is a profitable firm, with a tax rate of 22%:
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
