ACCOUNTING-A company has a capital structure of 40% debt and 60% equity
Question # 00115177
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Updated on: 10/09/2015 08:25 PM Due on: 11/08/2015
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A company has a capital structure of 40% debt and 60% equity. The YTM on the company’s bonds is 9%, and the effective tax rate is 40%. The cost of equity is 13%. What is the company’s’ WACC?
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Solution: ACCOUNTING-A company has a capital structure of 40% debt and 60% equity