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| Teaching Since: | May 2017 |
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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
Calculating the WACC. Gnomes R Us is considering a new project. The company has a debt–equity ratio of .48. The company’s cost of equity is 11.8 percent, and the aftertax cost of debt is 5.6 percent. The firm feels that the project is riskier than the company as a whole and that it should use an adjustment factor of +3 percent. What is the WACC it should use for the project?
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