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What is b2b wacc if the firm faces an average tax rate

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Suppose that B2B, Inc., has a capital structure of 36 percent equity, 16 percent preferred stock, and 48 percent debt. Assume the before-tax component costs of equity, preferred stock, and debt are 14.5 percent, 11.0 percent, and 9.5 percent, respectively.

Question1 : What is B2B's WACC if the firm faces an average tax rate of 30 percent?

Reference no: EM132506805

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