Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt-equity ratio of 1.19. The cost of equity is 12.4 percent and the pretax cost of debt is 7 percent. What is the capital structure weight of the firm's equity if the firm's tax rate is 39 percent?
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Home » Business » Bermuda Cruises issues only common stock and coupon bonds. The firm has a debt-equity ratio of 1.19. The cost of equity is 12.4 percent and the pretax cost of debt is 7 percent.