Tinker bell has a capital structure of 60000 in debt and


Tinker bell has a capital structure of $60,000 in debt and $140,000 in equity. What is the firm's weighted cost of capital if the marginal pretax cost of debt is 12 percent, the firm's average pretax cost of debt outstanding is 8%, and the cost of equity is 14.5 percent? The tax rate for the firm is 40%.

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Financial Management: Tinker bell has a capital structure of 60000 in debt and
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