The Herron Company’s cost of common equity is 13 percent, it…
The Herron Company’s cost of common equity is 13 percent, its before-tax cost of debt is 10 percent, and its marginal tax rate is 30 percent. Given Herron’s market value capital structure below, calculate its WACC. Long-term debt $29,000,000 Common equity 51,000,000 Total capital $80,000,000