A company has a target capital structure of 70% debt and 30% equity. The yield to maturity on the companies bonds is 6%.

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answerhappygod
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A company has a target capital structure of 70% debt and 30% equity. The yield to maturity on the companies bonds is 6%.

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A company has a target capital structure of 70% debt and 30%
equity. The yield to maturity on the companies bonds is 6%. The
cost of equity is currently 14%. Calculate the weighted average
cost of capital
a)Under the assumption that there is no taxation
b)When the corporate taxation rate is 25%
SHow detailed working.
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