Joes carwash has 4 billion in debt and 2 billion in equity


Joe's Carwash has $4 billion in debt and $2 billion in equity. The firm’s cost of debt of 3.3 percent and a cost of equity of 14.4 percent (assume that these costs do not change with the capital structure). The tax rate is 35%. What is the firm’s weighted average cost of capital? Enter your answer rounded to four decimal places.

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Financial Management: Joes carwash has 4 billion in debt and 2 billion in equity
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