The Black Bird Company plans an expansion. The expansion is to be financed by selling $53 million in new debt and $50 million in common stock
The Black Bird Company plans an expansion. The expansion is to be financed by selling $53 million in new debt and $50 million in common stock. The before-tax required rate of return on debt is 7.01% and the required rate of return on equity is 16.53%. If the company is in the 34% tax bracket, what is the weighted average cost of capitol?
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The Black Bird Company plans an expansion. The expansion is to be financed by selling $53 million in new debt and $50 million in common stock. The before-tax required rate of return on debt is 7.01% and the required rate of return on equity is 16.53%. If the company is in the 34% tax bracket, what is the weighted average cost of capitol?
