Multiple Choice
A firm requires an investment of $20,000.The firm's debt cost of capital is 6%,and its return on equity is 15%.If the firm's pre-tax WACC is 10.5%,how much did the firm borrow?
A) $8,000
B) $10,000
C) $12,000
D) $14,000
E) $20,000
Correct Answer:
Verified
Correct Answer:
Verified
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