Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Blossom and Telecommunications Corporation has three divisions. The names of these divisions, along with the after-tax cost of
capital for each division and the market value of the assets in each division, are as follows:
Division Name
Cost of Capital
MV of Assets
Infrastructure development
6.45
$185,000,000
Power
5.50
$241,000,000
Telecommunications
6.10
$500,000,000
Ev
What is the overall after-tax cost of capital for Blossom and Telecommunications? (Round answer to 2 decimal places, e.g. 52.75%.)
After-tax cost of capital
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