The Fontenot Company’s cost of common equity is 16 percent,…
The Fontenot Company’s cost of common equity is 16 percent, its before-tax cost of debt is 11 percent, and its marginal tax rate is 25 percent. Given Fontenot’s market value capital structure below, calculate its WACC. Long-term debt $30,000,000 Common equity 50,000,000 Total capital $80,000,000