Multiple Choice
A firm has debt of $5,000, equity of $16,000, a leveraged value of $8,900, a cost of debt of 8%, a cost of equity of 12%, and a tax rate of 34%. What is the firm's weighted average cost of capital?
A) 7.29%
B) 7.94%
C) 8.87%
D) 10.40%
E) 11.05%
Correct Answer:
Verified
Correct Answer:
Verified
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