What is cost of capital given a tax rate twenty one percent
Problem
Olmstead Inc. has a target D/E ratio =0.45. The cost of equity is 12.4% and the pretax cost of debt is 4.1%. What is the cost of capital given a tax rate of 21%?
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Olmstead Inc. has a target D/E ratio =0.45. The cost of equity is 12.4% and the pretax cost of debt is 4.1%. What is the cost of capital given a tax rate of 21%
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