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A fiRm Has Debt of $8,000, a Leveraged Value of $18,800

Question 189

Multiple Choice

A firm has debt of $8,000, a leveraged value of $18,800, a cost of debt of 8.75%, a cost of equity of 13%, and a tax rate of 35%. What is the firm's weighted average cost of capital?


A) 9.89%
B) 10.33%
C) 10.69%
D) 11.19%
E) 12.48%

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