Multiple Choice
Able Company's shareholders are receiving a 22.5%return and its bondholders get a 14% return. Based on a 50 percent debt/equity ratio, with no preferred stock and a 46 percent tax rate, find Able's weighted average cost of capital.
A) 12.54 percent
B) 14.47 percent
C) 15.03 percent
D) 17.52 percent
Correct Answer:
Verified
Correct Answer:
Verified
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