The Crabtree Company’s cost of common equity is 15 percent,…
The Crabtree Company’s cost of common equity is 15 percent, its before-tax cost of debt is 11 percent, and its marginal tax rate is 45 percent. Given Crabtree’s market value capital structure below, calculate its WACC. Long-term debt $12,000,000 Common equity 18,000,000 Total capital $30,000,000