What would the weighted average cost of capital be if the debt-to-equity ratio was .75? What if it…


1. AT&B has a debit-equity proportion of 2.5. Its rWACC is 15 percent and its consume of debit is 11 percent. The oppidan tax trounce is 35 percent.

a. What is AT&B’s consume of equity excellent?

b. What is AT&B’s unlevered consume of equity excellent?

c. What would the weighted mean consume of excellent be if the debit-to-equity proportion was .75? What if it were 1.5?