hard · Principles of Finance cost-of-capital-structure
A company has a target Debt-to-Equity ratio of 0.60, a cost of equity of 15%, and a pre-tax cost of debt of 8%.
If the marginal tax rate is 30%, what is the Weighted Average Cost of Capital (WACC)?
- 10.63%
- 13.12%
- 11.48%
- 12.38%
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