Determining the after tax wacc


Problem:

A company's total debt is $425 million and the total asset are $925 million. The cost of equity is 10%, the pretax cost of debt is 7% and the tax rate is 35%.

Required:

Question: What is the after tax WACC?

Note: Show supporting computations in good form.

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Accounting Basics: Determining the after tax wacc
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