Their tax rate is 31 and their costs of debt and equity are


Vicki and Danny Longhorn have $375,000 of assets and $225,000 of liabilities. Their tax rate is 31%, and their costs of debt and equity are 8% and 12% respectibviely. What is their weighted average cost of capital?

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Financial Management: Their tax rate is 31 and their costs of debt and equity are
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