Assume the appropriate weighted average tax rate is 34, Financial Management

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Assume the appropriate weighted average tax rate is 34

Suppose that TapDance, Inc.’s capital structure features 70 percent equity, 30 percent debt, and that its before-tax cost of debt is 8 percent, while its cost of equity is 13 percent. Assume the appropriate weighted average tax rate is 34 percent. What will be TapDance’s WACC %?

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Financial Management: Assume the appropriate weighted average tax rate is 34

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Financial Management: Assume the appropriate weighted average tax rate is 34

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