Question
You now have all the necessary information to calculate the weighted average cost of capital for TSLA. Calculate this using book value weights and market
You now have all the necessary information to calculate the weighted average cost of capital for TSLA. Calculate this using book value weights and market value weights, assuming TSLA has a 21 percent tax rate. Which number is more relevant? You used TSLA as a pure play company to estimate the cost of capital for SMI. Are there any potential problems with this approach in this situation?
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Cost Benefit Analysis
Authors: Harry F. Campbell, Richard P.C. Brown
3rd Edition
1032320753, 9781032320755
