What is the wacc for sutter corporation

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Reference no: EM133265003

Question

Sutter Corporation maintains a target debt-to-assets ratio of one-half. The cost of equity capital is estimated at 9% and the cost of debt capital is estimated at 5%. The corporation faces a tax rate of 30%, with interest being a deductible expense on the corporate income tax return. What is the WACC for Sutter Corporation?

Reference no: EM133265003

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