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- 2014-8-6
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And here's the whammy.... that is straight from Schweser and here's the correct answer:
Debt to capital ----- 23.08% ----- Debt-to-equity divided by one plus debt-to-equity:
0.30 / (1 + 0.30).
After-tax cost of debt ----- 7.00% ----- Cost of debt times one minus tax rate: 10% |
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