WACC
Cookie Dough Manufacturing has a target
debt−equity ratio of 0.63. Its cost of equity is 19 percent, and its
cost of debt is 8 percent. If the tax rate is 33 percent, the company’s WACC is
percent. (Do not include the percent sign (%). Round your answer to 2 decimal
places, e.g. 32.16.)
HERE ARE SOME HINTS
1. Debt-equity ratio => D/E. From this you should be able
to figure out V (You have done this in lecture and in lab).
2. Determine the capital structure weights of debt and
equity.
3. Use the WACC formula to solve the problem.
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