Multiple Choice
The UpTowner has a beta of 1.18,a debt-to-equity ratio of 0.36,and a cost of equity of 11.74 percent.The market rate of return is 10.4 percent,and the tax rate is 35 percent.If the pretax cost of debt is 6.9 percent,what is the company's WACC?
A) 9) 82%
B) 8) 90%
C) 10.41%
D) 9) 96%
E) 10.12%
Correct Answer:
Verified
Correct Answer:
Verified
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