Homework answers / question archive / Bama Tide Inc typically uses equity as their main source of funding and typically only finances with 20% debt

Bama Tide Inc typically uses equity as their main source of funding and typically only finances with 20% debt

Finance

Share With

Bama Tide Inc typically uses equity as their main source of funding and typically only finances with 20% debt. The firm's after-tax cost of debt has been estimated to be 5% while their after-tax cost of equity is estimated at 10%. If the firm faces a 40% tax rate, what is their WACC?