Question Details

Accounting Homework Help

Dusit is financed 24% by debt yielding 8.5%. Investors require areturn of 15.5% on Dusit’s equity. a. What is the company’sweighted-average cost of capital if the corporate tax rate is 35%?(Do not round intermediate calculations. Enter your answer as apercent rounded to 2 decimal places.) Weighted-average cost ofcapital % b. What would be the company’s cost of capital if it wereexempted from corporate tax? (Do not round intermediatecalculations. Enter your answer as a percent rounded to 2 decimalplaces.) Weighted-average cost of capital %