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your company is financed 30% with riskless debt with a yield of 6% and 70% with equity with a cost of 14%. The corporate tax
your company is financed 30% with riskless debt with a yield of 6% and 70% with equity with a cost of 14%. The corporate tax rate is 25%.
a. what is the companys WACC at its existing capital structure?
b. what would be the ne WACC if it changes to being 40% debt financed?
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International Finance Transactions Policy And Regulation
Authors: Hal S. Scott
15th Edition
159941547X, 978-1599415475
