Multiple Choice
Suppose that Hanna Nails, Inc.'s capital structure features 45 percent equity, 55 percent debt, and that its before-tax cost of debt is 5 percent, while its cost of equity is 9 percent. If the appropriate weighted average tax rate is 40 percent, what will be Hanna Nails' WACC?
A) 5.18%
B) 5.70%
C) 6.80%
D) 7.00%
Correct Answer:
Verified
Correct Answer:
Verified
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