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

Question 45

Multiple Choice

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

A) 11.4%
B) 10.1%
C) 7.8%
D) 12.3%

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