- Capital Budgeting
Capital Structure for The Mallory Corporation
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The Mallory Corporation has a weighted average cost of capital of 11.5%. The company's cost of equity is 16%, and its cost of debt is 8.5%. The tax rate is 35%. What is the firm's debt-equity ratio?
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Please see the response to your posting as below:
Let X% of total capital is financed by equity.
Therefore (100-X%) is financed ...
Solution shows calculations of debt-equity ratio.