Business, 23.08.2021 23:00 itsjusmika

New Horizon Inc. is considering investing in a new project. New Horizon feels that its optimal capital structure is composed of 60% equity (common stocks), and 30% long-term debt. The cost of equity (common stocks) is 14%, while debt is 6% respectively. Assume corporate tax rate of 21%. Required:
What is New Horizon's weighted average cost of new capital (WACC)?

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New Horizon Inc. is considering investing in a new project. New Horizon feels that its optimal capit...

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