Multiple Choice
The Wrangler Co. has expected EBIT = $9,250, and debt with a face and market value of $14,000 paying a 9% annual coupon. The market value of the firm is $58,525. If the tax rate is 34%, what is
Wranger's unlevered cost of capital?
A) 9.00%
B) 11.35%
C) 12.12%
D) 12.76%
E) 12.99%
Correct Answer:
Verified
Correct Answer:
Verified
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