Multiple Choice
A firm requires an investment of $20,000,and will be financed with 50% equity and 50% debt.If the firm's debt cost of capital is 6%,and its return on equity is 15%,what is the firm's pre-tax WACC?
A) 10.5%
B) 15%
C) 6%
D) 9%
E) 21%
Correct Answer:
Verified
Correct Answer:
Verified
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