The firm is capital structure is 30% of debts and 70% of equity. The cost of debt before–Tax is 3%, and the cost of equity is 10%. The income tax is 30%. Calculate the WACC. Select one: a. WACC=4.5% b. WACC=7.63% c. WACC=5.63% d. WACC=9.3%
The firm is capital structure is 30% of debts and 70% of equity. The cost of debt before–Tax is 3%, and the cost of equity is 10%. The income tax is 30%. Calculate the WACC. Select one: a. WACC=4.5% b. WACC=7.63% c. WACC=5.63% d. WACC=9.3%
Chapter17: Multinational Capital Structure And Cost Of Capital
Section: Chapter Questions
Problem 12QA
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The firm is capital structure is 30% of debts and 70% of equity. The cost of debt before–Tax is 3%, and the
Select one:
a. WACC=4.5%
b. WACC=7.63%
c. WACC=5.63%
d. WACC=9.3%
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