Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Fisheries Ltd has a target debt to equity ratio of 50%

Fisheries Ltd has a target debt to equity ratio of 50%

Finance

Fisheries Ltd has a target debt to equity ratio of 50%. Currently, its book debt to equity ratio is 70%, which is considered to be a temporary state by its management and would likely revert to the target ratio in the near future. The company has an after-tax market cost of debt of 10% and a market cost of equity of 20%. What is the weighted average cost of capital (WACC) for the company?

a. 10.00%

b. 15.70%

c. 16.66%

d. 33.33%

Option 1

Low Cost Option
Download this past answer in few clicks

2.94 USD

PURCHASE SOLUTION

Already member?


Option 2

Custom new solution created by our subject matter experts

GET A QUOTE

rated 5 stars

Purchased 9 times

Completion Status 100%

Sitejabber (5.0)

BBC (5.0)

Trustpilot (4.8)

Google (5.0)