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Use the Following Information to Answer the Question(s)below

Question 18

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Use the following information to answer the question(s) below.
Galt Industries is expected to generate free cash flows of $24 million per year.Galt has permanent debt of $80 million,a corporate tax rate of 21%,and an unlevered cost of capital of 12% and its cost of debt capital is 6%.
-Galt's WACC is closest to:


A) 6.0%.
B) 9.6%.
C) 11.1%.
D) 10.7%.

Correct Answer:

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