Tempe steel weighted average cost of capital

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Reference no: EM132070711

In the spring of last year, Tempe Steel learned that the firm would need to re-evaluate the company's weighted average cost of capital following a significant issue of debt. The firm now has financed 40% of its assets using debt and 60% using equity. Calculate the firm's weighted average cost of capital where the firm's borrowing rate on debt is 7.8%, it faces a 35% tax rate, and the common stockholders require a 19.5% rate of return.

Tempe Steel's weighted average cost of capital is?

Reference no: EM132070711

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