Suppose that Glamour Nails, Inc.’s capital structure features 30 percent equity,

Suppose that Glamour Nails, Inc.’s capital structure features 30 percent equity, 70 percent debt, and that its after-tax cost of debt is 4 percent, while its cost of equity is 10 percent. If the appropriate weighted average tax rate is 21 percent, what will be Glamour Nails’ WACC?

 

0.30 × 10% + 0 × 0% + 0.70 × 4% = 5.8%.

Save your time - order a paper!

Get your paper written from scratch within the tight deadline. Our service is a reliable solution to all your troubles. Place an order on any task and we will take care of it. You won’t have to worry about the quality and deadlines

Order Paper Now