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Fuji IncIs Registered as a Business in the Film-Making Industry

Question 107

Multiple Choice

Fuji Inc.is registered as a business in the film-making industry.It can borrow in the debt market at 5%.Its cost of equity with 50% debt is 10%.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) 9.70%
B) 9.00%
C) 8.15%
D) 7.00%

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