The Crabtree Company’s cost of common equity is 12 percent,…
Questions
The Crаbtree Cоmpаny’s cоst оf common equity is 12 percent, its before-tаx cost of debt is 7 percent, and its marginal tax rate is 25 percent. Given Crabtree’s market value capital structure below, calculate its WACC. Long-term debt $14,000,000 Common equity 46,000,000 Total capital $60,000,000
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