Multiple Choice
The M&M Company is financed by $4 million (market value) in debt and $6 million (market value) in equity. The cost of debt is 5 percent and the cost of equity is 10 percent. Calculate the weighted average cost of capital. (Assume no taxes.)
A) 10 percent
B) 15 percent
C) 8 percent
D) 7 percent
Correct Answer:
Verified
Correct Answer:
Verified
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