Judy farm's year-end 2021 balance sheet lists current assets of $436,800, fixed assets of $551,200, current liabilities of $418,200, and long-term debt of $317,700. Tax rate is 25%, and Judy's costs of debt and equity are 8% and 7%, respectively. What is Judy's weighted average cost of capital?

Judy farm's year-end 2021 balance sheet lists current assets of $436,800, fixed assets of $551,200, current liabilities of $418,200, and long-term debt of $317,700. Tax rate is 25%, and Judy's costs of debt and equity are 8% and 7%, respectively. What is Judy's weighted average cost of capital?

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter6: Accounting For Financial Management

Section: Chapter Questions

Problem 12P

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