Chapter 14 Flashcards
1
Q
Cost of Debt (Bonds)
A
YTM
2
Q
Cost of Equity
A
R
3
Q
YTM after tax
A
YTM(1-tax rate)
4
Q
WACC
A
1) after tax cost of debt
2) cost of equity (common/preferred)
3) market values
4) weights
5) sum of (4s x 1 & 2)
