QUESTION 24 XYZ corporation has the following market value based capital structure. Long term bonds $20 billion Common e
Posted: Thu May 19, 2022 3:33 pm
QUESTION 24 XYZ corporation has the following market value based capital structure. Long term bonds $20 billion Common equity $30 billion The required rate of return for the common stock is 20% and the yield to maturity for the bonds is 10%. The tax rate is 30%. Compute the after tax weighted average cost of capital. Report the answer as a percentage figure without the % symbol.