The Pollos Chicken Company farms chickens for sale to grocery retailers. Pollos is all equity financed and its shareholders require a return of 7%. Gus Poultry Inc farms chickens for sale to fast food restaurants
Gus Poultry has 20% debt in its capital structure (debt-to-equity is 0.25), and its cost of debt is 4%. What is Gus's WACC? Assume that the tax rate is 0%.
A) 6.6%
B) 6.4%
C) 7.0%
D) 7.2%
E) 7.4%
C
Business
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At the mid-management level, functions are highly structured and the resources are predefined
Indicate whether the statement is true or false
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A study conducted in Germany with over 200 workers showed that networking ________
A) really does enhance success B) has some benefits but yields a poor return on investments C) enhances satisfaction but is not associated with financial success D) has its biggest impact during the first few years of a career
Business