17 August 2006

I finished my last test and passed the Series 86

"Company A has a debt to equity ratio of 40%. Their pretax cost of debt is 6%. The risk free rate of capital is 4% and market equity is 11%. Company A's beta is 1.2 and their taxed at rate of 28%. What is their Weighted After Tax of Cost of Capital rounded to a hundredth of a percent?"

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