Johnsons Inc. has a debt-to-equity ratio of 2. Its cost of equity is 15% and its cost of debt is 10%. The corporate tax rate is 35%. What is Johnsons' WACC?

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04-06-2024
Business

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Johnsons Inc. has a debt-to-equity ratio of 2. Its cost of equity is 15% and its cost of debt is 10%. The corporate tax rate is 35%. What is Johnsons' WACC?

Sagot :

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Johnsons Inc. has a debt-to-equity ratio of 2. Its cost of equity is 15% and its cost of debt is 10%. The corporate tax rate is 35%. What is Johnsons' WACC?

Sagot :

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