What is the weighted average cost of capital (WACC) for a company with 30% equity, 70% debt, an average yield to maturity (YTM) for debt of 8%, a tax rate of 32% and a cost of equity of 7%? 9% 6% 9% 7%
What is the weighted average cost of capital (WACC) for a company with 30% equity, 70% debt, an average yield to maturity (YTM) for debt of 8%, a tax rate of 32% and a cost of equity of 7%? 9% 6% 9% 7%
Chapter7: Types And Costs Of Financial Capital
Section: Chapter Questions
Problem 1dM
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- What is the weighted average cost of capital (WACC) for a company with 30% equity, 70% debt, an average yield to maturity (YTM) for debt of 8%, a tax rate of 32% and a
cost of equity of 7%?
- 9%
- 6%
- 9%
- 7%
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