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    Principles of Corporate Finance Study Set 4
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    Exam 9: The Cost of Capital
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    The Cost of Equity for a Firm Is 12% and Its
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The Cost of Equity for a Firm Is 12% and Its

Question 36

Question 36

Multiple Choice

The cost of equity for a firm is 12% and its cost of debt is 6%. Ignoring taxes, what is the firm'sWACC if its debt-to-equity ratio is 1.0?


A) 12%
B) 9%
C) 18%
D) 15%

Correct Answer:

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