Multiple Choice
Precision Cuts has a target debt-equity ratio of .48.Its cost of equity is 16.4 percent, and its pretax cost of debt is 8.2 percent.If the tax rate is 34 percent, what is the company's WACC?
A) 13.20 percent
B) 11.72 percent
C) 12.91 percent
D) 11.28 percent
E) 12.84 percent
Correct Answer:
Verified
Correct Answer:
Verified
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