In the following financial data, the firm has a before-tax cost of debt of 6.0%, a cost of equity of 12.1%, and a margin
Posted: Wed Jul 06, 2022 6:44 pm
In the following financial data, the firm has a before-tax costof debt of 6.0%, a cost of equity of 12.1%, and a marginal tax rateof 21%. The firm also has 50 percent debt and 50 percent equity.Using the weighted average cost of capital formula (WACC),calculate the after-tax cost of capital.
Group of answer choices
7.1 percent
8.42 percent
9.0 percent
5.9 percent
Group of answer choices
7.1 percent
8.42 percent
9.0 percent
5.9 percent