Calculating WACC
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Calculating WACC
Weston Industries has a debt-equity ratio of 1.5. Its WACC is 12%, and its cost of debt is 12%. The corporate tax rate is 35%.
a. What is Weston's cost of equity capital?
b.What is Weston's unlevered cost of equity capital?
c. What would the cost of equity be if the debt-equity ratio were 2?
What if it were 1.0?
What if it were zero?
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Calculating WACC is achieved.
Education
- BA, Ain Shams University, Cairo Egypt
- MBA, California State University, Sacramento
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