A small private company has 200000 in debt and 400000 in


A small private company has $200,000 in debt and $400,000 in equity. The interest rate on the loan is Prime + 2%. Current Prime is 3.25%.

What is the after tax cost of debt, assuming a 35% tax rate? What is the WACC if the cost of equity is 10%?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: A small private company has 200000 in debt and 400000 in
Reference No:- TGS02677282

Expected delivery within 24 Hours