What is the companys weighted average cost of capital

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Reference no: EM13924941

The BA720 Company has $15 million in pretax income, a tax rate of 30%, and a capital structure mix that is comprised of 78% in equity and 22% million in long term debt [market value basis]. The cost of debt is 9% and cost of equity is 12%.

a) What is the company’s weighted average cost of capital?

b) What is the value of the company?

Reference no: EM13924941

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