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Your Firm's Ks is 10%, Kd is 6% Before Taxes

Question 81

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Your firm's ks is 10%, kd is 6% before taxes, 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

Correct Answer:

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.6 x .036 ...

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