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A Firm Requires an Investment of $30,000 and Borrows $10,000

Question 37

Multiple Choice

A firm requires an investment of $30,000 and borrows $10,000 at 6%. If the return on equity is 15%,what is the firm's pretax WACC?

A) 14%
B) 12%
C) 11%
D) 13%

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