Eaglet corporation has the following target and costs, Ask an Expert

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Eaglet Corporation has the following target and costs associated with its capital structure. Based on these parameters what is Eaglet Corporations weighted average cost of capital?

Target common equity weight: 60 percent

Target debt weight: 40 percent

Cost of equity: 13 percent

Cost of debt: 6 percent

Tax rate: 35 percent

A) WACC = 9.36 percent

B) WACC = 6.63 percent

C) WACC = 10.20 percent

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Financial Management, Finance

Category:- Financial Management
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