Question
Your firm's debt to equity ratio (D/E) is 1.98 and the cost of the equity is 10.50% and the cost of the debt is 5.30%.
Your firm's debt to equity ratio (D/E) is 1.98 and the cost of the equity is 10.50% and the cost of the debt is 5.30%. Given that the tax rate is 30.00%, what is your firm's weighted average cost of capital (WACC)? (enter your value as a percent (i.e. 20.5 for 20.5%) tolerance is 0.1)
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International Financial Management
Authors: Jeff Madura
3rd Edition
0314862722, 978-0314862723
