Question
Western American Copper Company (WACC) has an unlevered cost of capital of 12%; a target debt to value ratio of 0.25; a debt cost of
Western American Copper Company (WACC) has an unlevered cost of capital of 12%; a target debt to value ratio of 0.25; a debt cost of capital of 8% and a corporate tax rate of 25%. Please estimate WACC's rwacc
| a. | 10.00% | |
| b. | 11.50% | |
| c. | 12.50% | |
| d. | 11.00% |
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Management and Cost Accounting
Authors: Alnoor Bhimani, Charles T. Horngren, Srikant M. Datar, George Foster
4th edition
978-1405888202
