The firm pays taxes at a rate of 30 the cost of equity is


CALCULATING A FIRM'S WACC Nestle Enterprises is estimating its cost of capital for the first time and has made the following estimates:

The firm's debt carries an AAA rating, which is currently yielding 6%; the firm pays taxes at a rate of 30%; the cost of equity is estimated to be 14%; and the firm's debt is equal to 20% of its enterprise value. What is Nestle's WACC?

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Financial Accounting: The firm pays taxes at a rate of 30 the cost of equity is
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