Multiple Choice
Taylor's has a beta of 0.97 and a debt-to-equity ratio of 0.46.The market rate of return is 11.3 percent,the tax rate is 34 percent,and the risk-free rate is 2.2 percent.The pretax cost of debt is 6.4 percent.What is the firm's WACC?
A) 8) 39%
B) 7) 67%
C) 8) 16%
D) 9) 46%
E) 8) 88%
Correct Answer:
Verified
Correct Answer:
Verified
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