A firm has a total market value of $10 million while its debt has a market value of $4 million. What is the after-tax weighted average cost of capital if the before-tax cost of debt is 10 percent, the cost of equity is 15 percent, and the tax rate is 35 percent?

Respuesta :

Answer:

gbnlpjvcdaaeyjjvhgggyuu

Answer:

the correct answer is 11.6%

Explanation:

weighted average cost of capital = 0.4(0.10)(1 - 0.35) + 0.6(0.15) = 11.6%

good luck ❤