The companys marginal tax rate is 40 the stockholders


Holt Caps Company has $20M in common equity and $5M in debt (and no preferred stock). Its recently issued bonds have a 6% coupon rate and are currently selling at par. The companys marginal tax rate is 40%. The stockholders required rate of return is estimated to be 10%. What is Holts WACC?

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Financial Management: The companys marginal tax rate is 40 the stockholders
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