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If a Firm Has Total Assets of $10 Million,stockholder's Equity

Question 86

Multiple Choice

If a firm has total assets of $10 million,stockholder's equity of $6 million,a cost of equity of 10,and an after tax cost of debt of 5%,what is the firm's weighted average cost of capital?


A) 8
B) 18
C) 7
D) 1

Correct Answer:

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