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a.
To determine: The WACC.
a.
![Check Mark](/static/check-mark.png)
Answer to Problem 8QP
The WACC is 11.27%.
Explanation of Solution
Determine the WACC
Therefore, the WACC is 11.27%.
b.
To determine: The
b.
![Check Mark](/static/check-mark.png)
Answer to Problem 8QP
The cost of equity is 12.60%.
Explanation of Solution
Determine the weight of debt and equity
Therefore, the weight of debt is 36.94% and the weight of equity is 63.06%.
Determine the cost of equity
Therefore, the cost of equity is 12.60%.
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Chapter 13 Solutions
FUNDAMENTALS OF CORP.FIN.(LL)-W/CONNECT
- Essentials Of InvestmentsFinanceISBN:9781260013924Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.Publisher:Mcgraw-hill Education,
- Foundations Of FinanceFinanceISBN:9780134897264Author:KEOWN, Arthur J., Martin, John D., PETTY, J. WilliamPublisher:Pearson,Fundamentals of Financial Management (MindTap Cou...FinanceISBN:9781337395250Author:Eugene F. Brigham, Joel F. HoustonPublisher:Cengage LearningCorporate Finance (The Mcgraw-hill/Irwin Series i...FinanceISBN:9780077861759Author:Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan ProfessorPublisher:McGraw-Hill Education
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