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Washington Company is financed by $4 million (market value) in debt and $6 million (market value) in equity. The cost of debt is 8%
Washington Company is financed by $4 million (market value) in debt and $6 million (market value) in equity. The cost of debt is 8% and the cost of equity is 14%. Calculate the weighted average cost of capital (WACC). Assume 21% tax rate.
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To calculate the weighted average cost of capital WACC we need to consider the proportion of debt and equity in the companys capital structure as well ...
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Entrepreneurial Finance
Authors: J. Chris Leach, Ronald W. Melicher
6th edition
1305968352, 978-1337635653, 978-1305968356
