Miller Manufacturing has a target debt-equity ratio of .45. Its cost of equity is 12.1 percent...
Miller Manufacturing has a target debt-equity ratio of .45. Its cost of equity is 12.1 percent and its cost of debt is 6.8 percent. If the tax rate is 21 percent, what is the company’s WACC? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Homework Answers
WACC = 0.121(1 / 1.45) + 0.068(0.45 / 1.45)(1 – 0.21)
WACC = 0.1001 or 10.01%
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Miller Manufacturing has a target debt-equity ratio of .45. Its
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