AEPL issues only common stock and bonds. The firm has a debt-equity ratio of 0.48. The cost of equity is 20.64 percent a
Posted: Thu Dec 23, 2021 8:59 am
AEPL issues only common stock and bonds. The firm has a debt-equity ratio of 0.48. The cost of equity is 20.64 percent and the after-tax cost of debt is 10.68 percent. The firm's tax rate is 30 percent? A. What is the capital structure weight of the firm's equity and debt? B. What is firm's WACC (weighted average cost of capital)? Show your working clearly and provide your answer to 2 decimal places.