Multiple Choice
The Felix Filter Corp. maintains a debt-equity ratio of .6. The cost of equity for Richardson Corp. is 16%,the cost of debt is 11% and the marginal tax rate is 30%. What is the weighted average cost of capital?
A) 8.38%
B) 11.02%
C) 12.89%
D) 13.00%
E) 14.12%
Correct Answer:
Verified
Correct Answer:
Verified
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