Dusit is financed 30% by debt yielding 8%. Investors require a return of 15% on Dusit's equity.
a. What is the company's weighted-average cost of capital if the corporate tax rate is 21%?
b. What would be the company's cost of capital if it were exempted from corporate tax?
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Dusit is financed 30% by debt yielding 8%. Investors require a return of 15% on Dusit's equity.
a....
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