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Prob 10 -9 WACC The Patrick Company?s cost of com...

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Prob 10 -9 WACC The Patrick Company?s cost of common equity is 16 percent, it is before tax cost of debt is 13 percent, and its marginal tax rate is 40 percent. The stock sells at book value. Using the following balance sheet, calculate Patrick?s WACC. Assets Liabilities Cash $120 Accounts receivables $240 Inventories $360 Long term debt $1152 Plant and equipment, net $2160 Common equity $1728 TProblem otal assets $2880 Total liabilities and equity $2880

 

Paper#13684 | Written in 18-Jul-2015

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