Question
XYZ Corporation's capital structure consists of 70% debt (with a pretax cost of 10%), and the balance of common equity (with a cost of 18%).
XYZ Corporation's capital structure consists of 70% debt (with a pretax cost of 10%), and the balance of common equity (with a cost of 18%). The company's income tax rate (federal and state combined), t, is 30%. XYZ's weighted-average cost of capital (WACC), to one decimal point, is:
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The Engineers Cost Handbook Tools For Managing Project Costs
Authors: Richard E. Westney
1st Edition
0824797965, 978-0824797966
