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    A Firm Requires an Investment of $40 000 and Borrows
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A Firm Requires an Investment of $40 000 and Borrows

Question 78

Question 78

Multiple Choice

A firm requires an investment of $40 000 and borrows $10 000 at 8%. If the return on equity is 20%, what is the firm's pre-tax WACC?


A) 15%
B) 16%
C) 14%
D) 17%

Correct Answer:

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