Business, 24.12.2019 22:31 keyshlavazquez5118

Coffeestop primarily sells coffee. it recently introduced a premium coffee-flavored liquor (bf liquors). suppose the firm faces a tax rate of 40 % and collects the following information. if it plans to finance 12 % of the new liquor-focused division with debt and the rest with equity, what wacc should it use for its liquor division? assume a cost of debt of 5.4 %, a risk-free rate of 3.5 %, and a market risk premium of 6.9 %.

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