Answered: a firm's financial data shows the…

a firm's financial data shows the following: Equity = $8,000 Debt = $2,000 Re = 12.5% Rd = 6% Tax rate = 30% Calculate the WACC

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter9: The Cost Of Capital

Section9.8: The Weighted Average Cost Of Capital (wacc)

Problem 3ST

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Question

a firm's financial data shows the following:

Equity = $8,000
Debt = $2,000
Re = 12.5%
Rd = 6%
Tax rate = 30%

Calculate the WACC

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