What would be the company cost of capital

Reference no: EM131968925

Question: Dusit is financed 26% by debt yielding 8.3%. Investors require a return of 15.3% on Dusit's equity.

a. What is the company's weighted-average cost of capital if the corporate tax rate is 35%? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Weighted-average cost of capital %

b. What would be the company's cost of capital if it were exempted from corporate tax? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places.)

Weighted-average cost of capital %

Reference no: EM131968925

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