Multiple Choice
A firm has debt of $90,000,equity of $140,000,a leveraged value of $100,000,a cost of debt of 6%,a cost of equity of 12%,and a tax rate of 40%. What is the firm's weighted average cost of capital?
A) 8.15%
B) 8.40%
C) 8.70%
D) 9.30%
E) None of these.
Correct Answer:
Verified
Correct Answer:
Verified
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