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Author Question: Springfield Corporation, whose tax rate is 34%, has two sources of funds: long-term debt with a ... (Read 72 times)

karateprodigy

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Springfield Corporation, whose tax rate is 34%, has two sources of funds: long-term debt with a market value of $6,000,000 and an interest rate of 9%, and equity capital with a market value of $16,000,000 and a cost of equity of 14%. What is Springfield's weighted average cost of capital (WACC)?
◦ 14.00%
◦ 9.97%
◦ 11.80%
◦ 12.64%


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Marked as best answer by karateprodigy on Mar 6, 2021

AmberC1996

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karateprodigy

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Reply 2 on: Mar 6, 2021
:D TYSM


JaynaD87

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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