APV, FTE, and WACC Mojito Mint Company has a debt–equity ratio of 0.45. The required return on the company’s unlevered equity is 17 percent, and the pretax cost of the firm’s debt is 9 percent. Sales revenue for the company is expected to remain stable indefinitely at last year’s level of 23,500,000. Variable costs amount to 60 percent of sales. The tax rate is 40 percent, and the company distributes all its earnings as dividends at the end of each year. a. If the company were financed entirely

WACC Kose, Inc., has a target debt-equity ratio of .65. Its WAC... | Filo

Weighted Average Cost of Capital (WACC) - Formula, Examples