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DATA INPUT
Cost of Debt Capital 9% Market Value of Debt 120,000,000$
Cost Equity Capital 14% Market Value of Equity $180,000,000
Tax Rate 40%
Division Total Assets Current Liabilities Before Tax Operating Income
(numbers in millions)
Properties 217.5$ 4.5$ 43.5$
Food Service 96.0$ 9.0$ 22.5$
SOLUTION
1.
After Tax Cost of Debt 5.4%
2. After Tax
Operating
Division Income Total Assets Current Liabilities WACC Economic Value Added
