Question
XYZ company has decided to take a bank loan for the amount of $20 million with interest charged at 6%. XYZ also has 3 million
XYZ company has decided to take a bank loan for the amount of $20 million with interest charged at 6%. XYZ also has 3 million in equity shares outstanding trading at $10 each with a return to shareholders of 11%. The company has a tax rate of 35%. What is the after tax Weighted Average Cost of Capital?
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The Business Of Personal Finance
Authors: Joseph Calandro Jr, John Hoffmire
1st Edition
1032104562, 978-1032104560
