If excels weighted average tax rate is 39 percent and its


Excel Precision Inc. has 3.75 million shares of common stock outstanding selling for $55 per share and an issue of $150 million in 7.5 percent, annual coupon bonds, with a maturity of 18 years, selling for 105 percent of par. If Excel’s weighted average tax rate is 39 percent and its cost of equity is 15 percent, what is their weighted average cost of capital.

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Financial Management: If excels weighted average tax rate is 39 percent and its
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