Multiple Choice
Your firm has earnings before interest and taxes of $160,000. Both the book and the market value of debt is $300,000. Your unlevered cost of equity is 12% while your cost of debt is 8%. The tax rate
Is 35%. What is your weighted average cost of capital?
A) 10.72%
B) 10.91%
C) 10.98%
D) 11.06%
E) 11.23%
Correct Answer:
Verified
Correct Answer:
Verified
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