Briefly summarize how this financial management approach

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Reference no: EM131952907

1. Suppose the marginal tax rate is 30% and the average tax rate is 25%. Which rate should you use for the WACC calculation?

2. Briefly summarize how this financial management approach would differ in the other business structures.

3. One year ago, you invested $3,370. Today it is worth $3,800.50. What rate of interest did you earn?

4. Suppose cost of equity is 5%, cost of debt is 2%, tax rate is 30%, ND/E ratio is 1.

Calculate the WACC.

Reference no: EM131952907

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