1 western car company has a wacc of 106 peachy computers, Ask an Expert

Finance

1. Western Car Company has a WACC of 10.6%. Peachy Computers has a WACC of 12.3%. What could explain this difference? Will your explanation hold all the time? Why?

2. Define EBIT and discuss why the optimal level of leverage from a tax-saving perspective is the level at which interest equals EBIT. Does this have a connection with under-leveraging corporations--both domestically and internationally?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92750408

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