Hetz Corp is financed 60% by debt with a pretax cost of 10%, and 40% by common equity with a pretax cost of 15%. Hetz Corp's marginal tax rate is 50%. Hetz's weighted average cost of capital is____.
9.0%, 10.0%, 12.0%, or 12.5% - please advise answer & why - thanks much!© BrainMass Inc. brainmass.com March 4, 2021, 6:12 pm ad1c9bdddf
The average cost of capitals are examined.