BioCryst Pharmaceuticals have an equity Finance for $300,000 and has recently taken out a long term loan of $500,000 with interest rate of 10%. Market risk Premium and Risk free rate is 8% and 6% respectively. Average Industry beta (Ungeared) is 1.8 and applicable tax rate is 25%. Calculate Weighted Average Cost of Capital

BioCryst Pharmaceuticals have an equity Finance for $300,000 and has recently taken out a long term loan of $500,000 with interest rate of 10%. Market risk Premium and Risk free rate is 8% and 6% respectively. Average Industry beta (Ungeared) is 1.8 and applicable tax rate is 25%. Calculate Weighted Average Cost of Capital

Entrepreneurial Finance

6th Edition

ISBN:9781337635653

Author:Leach

Publisher:Leach

Chapter7: Types And Costs Of Financial Capital

Section: Chapter Questions

Problem 1eM

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