Principles of Corporate Finance

After Tax WACC

Example - Sangria Corporation - continued





 



 +  ×



 



= −  ×

D V rE

r E

V

WACC ( 1 Tc) D

10. 84 %

. 1084
. 146
125
. 08 75
125

( 1. 35 )^50

=

=





 



 +  ×



 



WACC = −  ×