A company has 100 million shares outstanding trading for 5, Ask an Expert

Finance

A company has 100 million shares outstanding trading for $5 per share.

It also has $600 million in outstanding debt.

If its equity cost of capital is 12%, and its debt cost of capital is 10%, and its effective corporate tax rate is 40%, what is its weighted average cost of capital?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92788369

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