Company A is financed by 20% of debt and the rest of the company is financed by common equity. The company’s before-tax cost of debt is 5%, and its cost of equity is 11%. If the marginal tax rate is 30%, the company’s weighted average cost of capital (WACC) is _____.
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here