No debt but can borrow-tax rate

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Reference no: EM13945354

Chandeliers Corp. has no debt but can borrow at 6.4 percent. The firm’s WACC is currently 8.2 percent, and the tax rate is 35 percent.

A: If the firm converts to 35 percent debt, what is the company’s WACC? (Round your answer to 2 decimal places. (e.g., 32.16))

B: If the firm converts to 50 percent debt, what is the company’s WACC? (Round your answer to 2 decimal places. (e.g., 32.16))

Reference no: EM13945354

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