the target weighted average cost of capital for Felicia & Fred

/in /by

 Determine the target weighted average cost of capital for Felicia & Fred, given following assumptions:

  • Weights of 30% debt and 70% common equity (no preferred equity)
  • A 35% tax rate
  • The cost of debt is 9%
  • The beta of the company is 1.2
  • The risk free rate is 2%
  • The return on the market is 12%
 
"Looking for a Similar Assignment? Order now and Get 10% Discount! Use Code "Newclient"