Compute the after-tax cost of capital for boise cascade


Compute the after-tax cost of capital for Boise Cascade Company. Ignore unamortized financing costs. Information relative to rates appears in the footnotes to financial statements. Use a 15% cost for shareholder equity.Boise Cascade Co's weighted average cost of capital is 13.65%

WACC   =             E / (E + D)            *             Cost of Equity    +             D / (E + D)            *             Cost of Debt       *             (1 - Tax Rate)

=             0.8229   *             15.6%    +             0.1771   *             7.0539%               *             (1 - 35.215%)

=             13.65%

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Financial Management: Compute the after-tax cost of capital for boise cascade
Reference No:- TGS02715006

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