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A Firm Requires an Investment of $30,000 and Borrows $20,000

Question 50

Multiple Choice

A firm requires an investment of $30,000 and borrows $20,000 at 7%. If the return on equity is 15% and the tax rate is 30%, what is the firm's WACC?

A) 10.4%
B) 9.13%
C) 8.91%
D) 8.27%

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