Question
You are an FP&A at a major manufacturing company. Your company's capital structure is 65% debt and 35% equity. Your beta is 1.08 and your
You are an FP&A at a major manufacturing company. Your company's capital structure is 65% debt and 35% equity. Your beta is 1.08 and your debt is rated BBB+.
A political consultant predicts that the outcome of the November elections will lead to:
1) an increase in the U.S. corporate tax rate and 2) an increase in the U.S. Treasury rates.
Considering both effects simultaneously, how will the outcome of the election most likely affect your firm's weighted average cost of capital (WACC)?
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The Legal Environment Today Summarized Case Edition
Authors: Roger LeRoy Miller
8th Edition
130526276X, 978-1305279407, 1305279409, 978-1305704930, 1305704932, 978-1305262768
