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  3. Study Set
    Fundamentals of Corporate Finance Australasian
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    Exam 16: Capital Structure
  5. Question
    A Firm Requires an Investment of $20,000 and Borrows $10,000
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A Firm Requires an Investment of $20,000 and Borrows $10,000

Question 81

Question 81

Multiple Choice

A firm requires an investment of $20,000 and borrows $10,000 at 8%. If the return on equity is 20% and the tax rate is 30%, what is the firm's WACC?


A) 13.2%
B) 11.4%
C) 12.8%
D) 12..1%

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