Question
Your firm has a target capital structure of 60% common stock and 40% debt. Your cost of equity is 20% and cost of debt is
Your firm has a target capital structure of 60% common stock and 40% debt. Your cost of equity is 20% and cost of debt is 8%. Your tax rate is 21%. What is the WACC?
Group of answer choices
14.53%
11.55%
16.90%
15.46%
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Intermediate Financial Management
Authors: Eugene F Brigham, Phillip R Daves
14th Edition
0357516664, 978-0357516669
