Eaglet Corporation has the following target and costs associated with its capital structure. Based on...
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Accounting
Eaglet Corporation has the following target and costs associated with its capital structure. Based on these parameters what is Eaglet Corporations weighted average cost of capital? Target common equity weight: 60 percent Target debt weight: 40 percent Cost of equity: 13 percent Cost of debt: 6 percent Tax rate: 30 percent
Please show work so I can learn from explanation, thanks! :)
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WACC = 6.63 percent
WACC = 9.48 percent
WACC = 10.20 percent
WACC = 9.36 percent
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