Your firm's ks is 10%, the cost of debt is 6% before taxes, and the tax rate is 40%. Given the following balance sheet, calculate the firm's after tax WACC:
	Total assets	=	$ 25.000,00
	Total debt	=	$ 15.000,00
	Total equity	=	$ 10.000,00

Your firm is in the 30% tax bracket with a before-tax required rate of return on its equity of 13% and on its debt of 10%. If the firm uses 60% equity and 40% debt financing, calculate its after-tax WACC.

Would a firm use WACC or MCC to identify which new capital budgeting projects should be selected? Why?

A firm's before tax cost of debt on any new issue is 9%; the cost to issue new preferred stock is 8%. This appears to conflict with the risk/return relationship. How can this pricing exist?

What determines whether to use the dividend growth model approach or the CAPM approach to calculate the cost of equity?