question archive The firm can borrow at 9%
The firm can borrow at 9%
Subject:FinancePrice: Bought3
The firm can borrow at 9%. Cede currently has no debt, and its cost of equity is 21%. The tax rate is 33%.
What is the firm's WACC after borrowing $45,000 and using the proceeds to repurchase shares (i.e., after recapitalization)?
(Answer in percentage terms and round to 2 decimal places. Do not round intermediate calculations.)
