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Author Question: What is the weighted average cost of capital after taxes if the desired capital structure is 40% ... (Read 166 times)

dejastew

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on: Apr 25, 2021

Question 1

What is the weighted average cost of capital after taxes for Moss Diet Centers if the target weights are 25% equity and 75% debt, and the costs of equity and after-tax debt are 15% and 12%, respectively? Assume the relevant tax rate is 20%.
◦ 12.5%
◦ 11.0%
◦ 12.8%
◦ 14.0%
◦ 13.5%

Question 2

What is the weighted average cost of capital after taxes if the desired capital structure is 40% debt and 60% equity, investors require a 10% pre-tax return from debt and 25% from equity, and the tax rate is 30%?
◦ 18%
◦ 20%
◦ 11%
◦ 15%
◦ 19%
Corporate Finance Online ¦ Eakins, McNally ¦ 2nd Edition
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Marked as best answer by dejastew on Apr 25, 2021

lorealeza

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Reply #1 on: Apr 25, 2021
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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dejastew

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Reply 2 on: Apr 25, 2021
YES! Correct, THANKS for helping me on my review

kilada

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Reply 3 on: Yesterday
Wow, this really help

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