Taurus Corporation raises capital by issuing debt and common equity to investors. The comp

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Business & Finance
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Question description

Taurus Corporation raises capital by issuing debt and common equity to investors. The company's weighted-average cost of capital (WACC) is 8 percent. Taurus' after-tax cost of debt is 6.5 percent, and its cost of equity is 11.5 percent. Based on the formula for the WACC, Taurus' debt ratio (the percent of debt in Taurus' capital structure) is

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(Top Tutor) Daniel C.
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