Multiple Choice
Fuji Inc.is registered as a business in the film-making industry.It can borrow in the debt market at 7%.Its cost of equity with 50% debt is 14%.Its corporate tax rate is 20%.If the M&M world of taxes holds,what is the WACC for Fuji with 50% debt financing?
A) 8.75%
B) 8.90%
C) 9.15%
D) 9.80%
Correct Answer:
Verified
Correct Answer:
Verified
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