Weighted average cost of capital for limp linguini noodle

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Reference no: EM13932639

What would be the weighted average cost of capital for limp linguini noodle makers inc under the following conditions.

the capital structure is 40% debt and 60% equity.

the before tax cost of debt is 15% and the firm is in the 40% tax bracket.

the firms beta is 1.4%.

the risk free rate is 3% and the market risk premium is 5%.

Reference no: EM13932639

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