Abdc corporation has a target capital structure of 30


ABDC Corporation has a target capital structure of 30% long-term debt and 70% common stock equity. The firm’s before-tax cost of debt is 6.45% and its cost of equity is 12.85%. Assume that ABDC is in the 33% income tax bracket, what is ABDC’s weighted average cost of capital? (Please round you answer to the nearest 0.1%, e.g. 10.1% should be shown as 0.101).

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Financial Management: Abdc corporation has a target capital structure of 30
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