Multiple Choice
A firm uses only debt and equity in its capital structure. The firm's weight of equity is 75%. The firm's cost of equity is 16% and it has a tax rate of 30%. If the firm's WACC is 13%, what is the firm's before-tax cost of debt?
A) 6.89%
B) 6.28%
C) 5.97%
D) 5.71%
Correct Answer:
Verified
Correct Answer:
Verified
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