Target debt–equity ratio and cost of equity

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Reference no: EM131552382

Tulloch Manufacturing has a target debt–equity ratio of .61. Its cost of equity is 13.4 percent, and its pretax cost of debt is 8.4 percent. If the tax rate is 40 percent, what is the company’s WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) WACC %

Reference no: EM131552382

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