Nike, Inc., has a debt-equity ratio of 2.3. The firm's weighted average cost of capital is 10 percent and its pretax cost of debt is 6%. The tax rate is 24%. What would the company's weighted average...


Nike, Inc., has a debt-equity ratio of 2.3.  The firm's weighted average cost of capital is 10 percent and its pretax cost of debt is 6%.  The tax rate is 24%.



What would the company's weighted average cost of capital be if the firm's debt-equity ratio were .75 and 1.3?



Jun 08, 2022
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