Dusit is financed 33 by debt yielding 83 investors require


Dusit is financed 33% by debt yielding 8.3%. Investors require a return of 15.3% on Dusit’s equity.

a. What is the company’s weighted-average cost of capital if the corporate tax rate is 35%? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Weighted-average cost of capital             % 

b. What would be the company’s cost of capital if it were exempted from corporate tax? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Weighted-average cost of capital             %  

Request for Solution File

Ask an Expert for Answer!!
Financial Management: Dusit is financed 33 by debt yielding 83 investors require
Reference No:- TGS01414181

Expected delivery within 24 Hours