(2) What was the full cost per unit? (5%)

6. LRB Company has two sources of funds: long-term debt with a market and book value of 30 million issued at an interest rate of 10% and equity capital that has a market value of 20 million. The cost of equity capital for LRB Company is 12%, and its tax rate is 20%. Division A of LRB Company has the following operating results for 2019: Operating income $300,000 Assets $2,500,000 Current Liabilities $600,000 Required: (1) What is LRB Company's weighted average cost of capital? (5%)

(2) What was the full cost per unit? (5%)

相關申論題

相關試卷