contestada

take it all away has a cost of equity of 10.72 percent, a pretax cost of debt of 5.39 percent, and a tax rate of 21 percent. the company's capital structure consists of 74 percent debt on a book value basis, but debt is 34 percent of the company's value on a market value basis. what is the company's wacc? multiple choice 9.50% 11.12% 7.23% 8.52% 8.91%

Respuesta :

anshumanaryan799

But debt is 34 percent of the company's value on a market value basis. 8.91% is the company's WACC.

  • WACC = .62(10.96%) + .38(5.46%)(1 − .40)
  • WACC = 8.91%

Market value (OMV) is the price at which an asset trades in a competitive auction environment. Market value is often used interchangeably with open market value, fair value, or fair market value, although these terms are defined differently by different standards and can vary. The market value represents the value of a company according to the stock market. It is the price the asset will take in the market. In the corporate context, market value is the same as market capitalization. This is a calculated amount based on the current market price of the company's stock.

Learn more about market value here: https://brainly.com/question/17190441

#SPJ4

Otras preguntas