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    Biddie32's Avatar
    Biddie32 Posts: 6, Reputation: 1
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    #1

    Mar 17, 2009, 04:36 PM
    Capital and Debt
    The Mouse Trap Inc. has a cost of equity of 16.5 percent and a pre-tax cost of debt of 7.4 percent. The firm's target weighted average cost of capital is 11.5 percent and its tax rate is 34 percent. What capital structure weight does Mouse Trap's debt carry?
    ROLCAM's Avatar
    ROLCAM Posts: 1,420, Reputation: 23
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    #2

    Mar 17, 2009, 04:41 PM

    More details are required so that one can calculate the required rate.
    The volumes of equity and debt.
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