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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
by answerhappygod
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 1
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 1 (38.8 KiB) Viewed 89 times
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? [6 marks] B. What is firm's WACC (weighted average cost of capital)? [4 marks] Show your working clearly and provide your answer to 2 decimal places.