Multiple Choice
A firm requires an investment of $20,000.The firm's debt cost of capital is 5%,and its return on equity is 12%.If the firm's pre-tax WACC is 7.8%,how much equity did the firm use for its investment?
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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