Multiple Choice
Worldwide Inc.is an import-export company specializing in products from Canada,Australia,and the West Coast.It can borrow in the debt market at 8%.Its cost of equity with 30% D/V ratio is 13%.Its corporate tax rate is 30%.If the M&M world of taxes holds true,what is the WACC for the firm with a 30% D/V financing?
A) 11.90%
B) 11.05%
C) 10.78%
D) 9.44%
Correct Answer:
Verified
Correct Answer:
Verified
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