The Callaway Company 's cost of equity is 22 Its before tax cost of debt is 13 , and its marginal tax rate is 40 The firm 's capital structure calls for a debt to equity ratio of 45 Calculate Callaway 's cost of capital ...

The Callaway Company's cost of equity is 22%. Its before-tax cost of debt is 13%, and its

Question:

The Callaway Company's is 22%. Its before-tax is 13%, and its marginal tax rate is 40%. The firm's calls for a debt-to-equity ratio of 45%. Calculate Callaway's cost of capital.
Capital Structure
Capital structure refers to a company’s outstanding debt and equity. The capital structure is the particular combination of debt and equity used by a finance its overall operations and growth. Capital structure maximizes the market value of a... Cost Of Debt
The cost of debt is the effective interest rate a company pays on its debts. It’s the cost of debt, such as bonds and loans, among others. The cost of debt often refers to before-tax cost of debt, which is the company's cost of debt before taking... Cost Of Equity
The cost of equity is the return a company requires to decide if an investment meets capital return requirements. Firms often use it as a capital budgeting threshold for the required rate of return. A firm's cost of equity represents the...