Caddie Manufacturing has a target debt-equity ratio of .75. Its cost of equity is percent, and its pretax cost of debt is 7 percent. If the tax rate is 25 percent, what is company's WACC? (Do not round intermediate calculations and enter your answer a percent rounded to 2 decimal places, e.g., 32.16.) WACC %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Caddie Manufacturing has a target debt-equity ratio of .75. Its cost of equity is
percent, and its pretax cost of debt is 7 percent. If the tax rate is 25 percent, what is 1
company's WACC? (Do not round intermediate calculations and enter your answer
a percent rounded to 2 decimal places, e.g., 32.16.)
WACC
%
Transcribed Image Text:Caddie Manufacturing has a target debt-equity ratio of .75. Its cost of equity is percent, and its pretax cost of debt is 7 percent. If the tax rate is 25 percent, what is 1 company's WACC? (Do not round intermediate calculations and enter your answer a percent rounded to 2 decimal places, e.g., 32.16.) WACC %
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