Discuss the weighted average cost of capital for hodges

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Reference no: EM131929009

Discuss the weighted average cost of capital (WACC) for Hodges Corporation. How much is their WACC and why do they need to know this? What will they do with this information?

a) Their capital structure is 40% debt and 60% equity

b) Their after tax cost of debt is 3.1%

c) Their cost of equity capital is 9%

Reference no: EM131929009

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