Coca cola has equity of 30 million and debt of 10 million


Question

Coca cola has equity of $30 million and debt of $10 million. Its cost of debt is 6% and the tax rate is 35%. Its weighted average cost of capital is 12%.

What is its after tax cost of debt?

What is its cost of equity capital?

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Financial Management: Coca cola has equity of 30 million and debt of 10 million
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