What is tafkaps


Problem: TAFKAP Industries has 5 million shares of stock outstanding selling at $13 per share, and an issue of $30 million in 8.5 percent annual coupon bonds with a maturity of 10 years, selling at 107 percent of par. Assume TAFKAP's weighted average tax rate is 34 percent and its cost of equity is 12.5 percent.

Required:

What is TAFKAP's WACC?

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Finance Basics: What is tafkaps
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