Multiple Choice
A firm undertakes an investment that is financed with $10,000 of equity and $30,000 of debt.If the return on equity is 14%,the cost of debt is 7% and the tax rate is 25%,what is the firm's WACC?
A) 6.76%
B) 9.92%
C) 7.00%
D) 8.75%
E) 7.44%
Correct Answer:
Verified
Correct Answer:
Verified
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