Question
Your company's target capital structure is 30% debt and 70% equity. The company's after-tax cost of debt is 8%. The company's beta is 1.3, the
Your company's target capital structure is 30% debt and 70% equity. The company's after-tax cost of debt is 8%. The company's beta is 1.3, the risk-free rate is 4%, and the market risk premium is 6%. The marginal tax rate is 35%. What is your company's weighted average cost of capital?
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Multinational Business Finance
Authors: David Eiteman, Arthur Stonehill, Michael Moffett
15th Global Edition
129227008X, 9781292270081
