Please tell me how to find K given the parameters in the problem for #9.50. You can see how I'm trying to do it, but I can't figure out what to plug in for Cd and Ce from what's given.
We are given that cost of equity is 22%. Before tax cost of debt is 13%. Tax rate is 40% and debt to equity ratio is 45%. The first thing is to calculate the after tax cost of debt. The after tax cost ...
The solution explains the calculation of the weighted average cost of capital