Multiple Choice
Dye Industries currently uses no debt, but its new CFO is considering changing the capital structure to 40.0% debt (wd) Risk-free rate, rRF 6.00% Tax rate, T 40% Market risk premium, RPM 4.00% Current wd 0% Current beta, bU 1.15 Target wd 40%
A) 1.66%
B) 1.84%
C) 2.02%
D) 2.23%
E) 2.45%
Correct Answer:
Verified
Correct Answer:
Verified
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