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| Teaching Since: | Apr 2017 |
| Last Sign in: | 438 Weeks Ago, 6 Days Ago |
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bachelor in business administration
Polytechnic State University Sanluis
Jan-2006 - Nov-2010
CPA
Polytechnic State University
Jan-2012 - Nov-2016
Professor
Harvard Square Academy (HS2)
Mar-2012 - Present
Axle Co.'s shareholders require a 22.5 percent return and Axle's bondholders require a 14 percent return. Based on a 33.33 percent of the debt/total asset ratio and a 46 percent tax rate, find Axle's weighted average cost of capital. Hint: use WACC formula.
vWA-----------CC -----------= r-----------D (-----------1- -----------Tc -----------)*(----------- D -----------/ V----------- )+----------- rE----------- *(----------- E -----------/ V----------- ) -----------Whe-----------re.-----------.. -----------rD -----------= T-----------he -----------req-----------uir-----------ed -----------ret-----------urn----------- of----------- th-----------e f-----------irm-----------'s -----------Deb-----------t f-----------ina-----------nci-----------ng -----------(1------------Tc)----------- = -----------The----------- Ta-----------x a-----------dju-----------stm-----------ent----------- fo-----------r i-----------nte-----------res-----------t e-----------xpe-----------nse-----------