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Target capital=45%debt,55%equity. costof equity=18%,costofdebt=9%.taxra... What is company's WACC? |
this is a managerial finance question and WACC stands for Weighed Average Cost of Capital. The question is this: a company has a target capital structure of 45% debt, 55% equity. Its cost of equity is 18% & its cost of debt is 9%. if the tax rate is 34%, What is the WACC? WACC=12.573% |
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