2B4B ANGELA COMPANY’S CAPITAL STRUCTURE CONSISTS ENTIRELY OF LONG-TER...
138.
CSO: 2B4c
LOS: 2B4b
Angela Company’s capital structure consists entirely of long-term debt and common
equity. The cost of capital for each component is shown below.
Long-term debt
8%
Common equity
15%
Angela pays taxes at a rate of 40%. If Angela’s weighted average cost of capital is