Multiple Choice
Your firm has earnings before interest and taxes of $210,000. Both the book and the market value of debt is $500,000. Your unlevered cost of equity is 9% while your cost of debt is 7%. The tax rate is 35%. What is your weighted average cost of capital?
A) 8.07%
B) 8.19%
C) 8.31%
D) 8.54%
E) 8.67%
Correct Answer:
Verified
Correct Answer:
Verified
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