Consider a firm that has a debt-equity ratio of 1/3. The rate of return for debt is 8% and the rate of return for equity
Posted: Fri Jul 01, 2022 7:48 am
Consider a firm that has a debt-equity ratio of 1/3. The rate ofreturn for debt is 8% and the rate of return for equity is 14%. Thecorporate tax rate is 38%. What is the weighted average cost ofcapital? Enter your answer as a percentage and rounded to 2 DECIMALPLACES. Do not include the percentage sign in your answer.