Homework 11 - Homework 11 1. Fido, Inc. has the following...

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Homework 11 1. Fido, Inc. has the following capital structure: $600 million from stock sales with an average cost of 10.2% per year. $150 million from bond sales with an average cost of 6.7% per year. $120 million borrowed on their bank line of credit at a 5.5% APR. a. What is Fido’s before-tax WACC? b. What is Fido’s after-tax WACC if their effective tax rate is 36%? c. If Fido, Inc. wants a 6% profit what is their MARR?
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This note was uploaded on 12/07/2011 for the course CIVL 4111 taught by Professor Moore,l during the Fall '08 term at U. Memphis.

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