Multiple Choice
A firm's debt sells for £10 million and equity for £30 million. The firm's before-tax cost of debt is 9%. Its cost of equity is 18%. The corporate tax rate is 33%. The firm's weighted average cost of capital is closest to which of the following?
A) 6%
B) 9%
C) 12%
D) 15%
E) 18%
Correct Answer:
Verified
Correct Answer:
Verified
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