Transitions Inc. is an import-export-company specializing in products from Asia
January 2nd, 2018
Transitions Inc. is an import-exportcompany specializing in products from Asia and the West Coast. It can borrow in the debt market at8%. Its cost of equity with40% D/V ratio is12%. Its corporate tax rate is30%. If theM&M world of taxes holdstrue, what is the WACC for Transitions Inc. with a40% D/Vfinancing?