Multiple Choice
A firm has debt of $10,000,equity of $15,000,a cost of debt of 7%,a cost of equity of 14%,and a tax rate of 40%.What is the firm's weighted average cost of capital?
A) 6.30%
B) 7.00%
C) 10.08%
D) 10.40%
E) 14.00%
Correct Answer:
Verified
Correct Answer:
Verified
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