medium · Principles of Finance cost-of-capital-structure
A firm has market equity of $2,400M and debt of $600M. Its cost of equity is 10.33% and its pre-tax cost of debt is 6%.
With a 25% tax rate, what is the WACC?
- 9.17%
- 9.46%
- 8.27%
- 10.33%
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