Your firms ks is 10 the cost of debt is 6 before taxes and


Your firm’s ks is 10%, the cost of debt is 6% before taxes, and the tax rate is 40%. Given the following balance sheet, calculate the firm’s after tax WACC:

            Total assets                             = $25,000

            Total debt                               =   15,000

            Total equity                            =   10,000

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Financial Management: Your firms ks is 10 the cost of debt is 6 before taxes and
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