Multiple Choice
What is the minimum required rate of return on a lease from Dominion Leasing Corporation (DLC) if DLC's tax rate is 40%, and its capital structure consists of 80% long-term debt with a cost of 7% and 20% equity with a cost of 13.8%?
A) 9.98%
B) 8.36%
C) 6.12%
D) 6.34%
Correct Answer:
Verified
Correct Answer:
Verified
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