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A Firm Has a Cost of Debt of 7

Question 54

Multiple Choice

A firm has a cost of debt of 7.8 percent and a cost of equity of 15.6 percent.The debt-equity ratio is .52.There are no taxes.What is the firm's weighted average cost of capital?


A) 11.76 percent
B) 11.29 percent
C) 12.93 percent
D) 12.47 percent
E) 10.20 percent

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