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Effects of a corporate tax on the WACC

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Can one minimize WACC when there is a constraint on raising debt? If so, how?

What are the effects of a corporate tax on the WACC of a business?

Copernicus Inc. has determined that its target capital structure will be 60% debt, 10% preferred stock, and 30% common stock. As the financial manager, the CFO has informed you that the company's before tax cost of debt is 10%, preferred stock is 14%, and common stock is 16%. In addition, the company's marginal tax rate is 40%. Based on the information provided, calculate the weighted average cost of capital (WACC).

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This discusses the effects of a corporate tax on the WACC

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Can one minimize WACC when there is a constraint on raising debt? If so, how?

What are the effects of a corporate tax on the WACC of a business? ...

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