What is the companys wacc
Problem
Fama's Llama has a weight on common stock of 70% and a weight on debt of 30%. Its cost of equity is 11.5%, and the cost of debt is 5.9%. The relevant tax rate is 35%. What is the company's WACC?
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Fama's Llama has a weight on common stock of 70% and weight on debt of 30%. Its cost of equity is 11.5%, and cost of debt is 5.9%. What is the company's WACC?
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