Corporate Finance II: Financing Investments and Managing Risk | Online Course Support

Questions 3 and 4 are based on the following example: a company has a cost of capital (WACC) equal to 7.8%. The cost of equity is 9%, the cost of debt is 4%, the tax rate is 30%, and debt represents 20% of the value of the firm (D/V = 20%).

 
 
 
 

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