Debt ratio and equity ratio

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Reference no: EM13732282

1) Suppose the debt ratio for a company is 45%. The after tax cost of debt is 5% and the cost of retained earnings is 12%. What is the WACC of this company based on the information given?

2) suppose the Debt over equity ratio (D/E) for a company is 1.6. The after tax cost of debt is 5% and the cost of retained earnings is 12%. What is the WACC of this company based on the information given?

Reference no: EM13732282

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