A firms preferred capital mix is 80 equity and 20 debt
A firm's preferred capital mix is 80% equity and 20% debt. Their treasurer has estimated the required return to investors to be 12%; they have debt with a rate of 8%; and a tax rate of 40%. What is the firm's weighted average cost of capital?
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a firms preferred capital mix is 80 equity and 20 debt their treasurer has estimated the required return to investors
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