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Given the Following Data for U&P Company: Debt (D) =

Question 20

Multiple Choice

Given the following data for U&P Company: Debt (D) = $100 million; Equity (E) = $300 Million; rD = 6%; rE = 12% and TC = 30%.
Calculate the after-tax weighted average cost of capital (WACC) :


A) 10.5%
B) 15%
C) 10.05%
D) 9.45%

Correct Answer:

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