Weighted average cost of capital of firm


WACC

Response to the following problem:

An MNC has total assets of $100 million and debt of $20 million. The firm's before-tax cost of debt is 12 percent, and its cost of financing with equity is 15 percent. The MNC has a corporate tax rate of 40 percent. What is this firm's weighted average cost of capital?

 

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Financial Accounting: Weighted average cost of capital of firm
Reference No:- TGS02068817

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