Determining the capital structure weight


Chris's Fulltime Frenzy issues only common stock and coupon bonds. CFF has a debt-equity ratio of .60. The cost of equity is 13.7 percent and the pre-tax cost of debt is 9.4 percent. The tax rate is 35 percent. What is the capital structure weight of the CFF's equity?

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Finance Basics: Determining the capital structure weight
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