Page 1 of 1
Your boss, whose background is in financial planning, is concerned about the company's high weighted average cost of cap
Posted: Thu May 19, 2022 10:11 am
by answerhappygod
- Your Boss Whose Background Is In Financial Planning Is Concerned About The Company S High Weighted Average Cost Of Cap 1 (26.58 KiB) Viewed 51 times
Your boss, whose background is in financial planning, is concerned about the
company's high weighted average cost of capital (WACC) of 25%. He has asked you to determine what combination of debt-equity financing would lower the
company's WACC to 18%. If the cost of the
company's equity capital is 6% and the cost of debt financing is 28%, what debt-equity mix would you recommend? The debt-equity mix should be % debt and % equity financing