Caddie Manufacturing has a target debt-equity ratio of .75. Its cost of equity is percent, and its pretax cost of debt is 7 percent. If the tax rate is 25 percent, what is company's WACC? (Do not round intermediate calculations and enter your answer a percent rounded to 2 decimal places, e.g., 32.16.) WACC %
Caddie Manufacturing has a target debt-equity ratio of .75. Its cost of equity is percent, and its pretax cost of debt is 7 percent. If the tax rate is 25 percent, what is company's WACC? (Do not round intermediate calculations and enter your answer a percent rounded to 2 decimal places, e.g., 32.16.) WACC %
Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter14: Long-term Liabilities: Bonds And Notes
Section: Chapter Questions
Problem 1PEA
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