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  1. business
  2. accounting
  3. company a is financed by 18% of debt and the rest

Company A is financed by 18% of debt and the rest of the company is...

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Accounting

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Company A is financed by 18% of debt and the rest of the company is financed by common equity. The company's before-tax cost of debt is 4.9%, and its cost of equity is 12.9%. If the marginal tax rate is 30%, the company's weighted average cost of capital (WACC) is . (Note: Round your answer to 3 decimal places. For example, if your answer is 8.7%, you should write 0.087 in the answer box. DO NOT write 8.7 in the box as you will be marked wrong)

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