FINANCE-Danida Inc. has a target debt-equity ratio of 1.15. Its WACC is 7.5%,
QUESTION
Danida Inc. has a target debt-equity ratio of 1.15. Its WACC is 7.5%, and the tax rate is 30%. If Danida’s cost of equity is 12%, what is its pre-tax cost of debt?8.43%7.33%6.23%5.13%4.03%
ANSWER:
Expert paper writers are just a few clicks away
Place an order in 3 easy steps. Takes less than 5 mins.