Trader A enters into futures contracts to buy 1 million euros for 1.1 million dollars in three months. Trader B enters in a forw
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Answer:
The after-tax weighted average cost of capital for Ronnie's Commics is 9.6%
Explanation:
WACC is calculated by the formula
=
According to the information given in the question,
E+D= $250,000,000 + $750,000,000 = $1,000,000,000
E = $250,000,000
D = $750,000,000
T = 35%
Re = 15%
Rd = 12%
Substituting the values in the formula,
=
= 3.75 + 5.85 = 9.6%