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Assume the Following Data for U&P Company: Debt (D)= $100

Question 38

Multiple Choice

Assume the following data for U&P Company: Debt (D) = $100 million; Equity (E) = $300 million; rD = 6%; rE = 12%; and TC = 30%. Calculate the after-tax weighted average cost of capital (WACC) :


A) 10.5 percent
B) 15.00 percent
C) 10.05 percent
D) 9.45 percent

Correct Answer:

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