If the company has a debt to equity ratio of 3 a tax rate


Suppose that ACRC cross-lists on the U.S. market and this causes their equity cost of capital to be 7%. If the company has a debt to equity ratio of 3, a tax rate of 25% and an interest rate of 5% on its debt, what is ACRC's WACC?

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Finance Basics: If the company has a debt to equity ratio of 3 a tax rate
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