Multiple Choice
Glass Growers has no debt.Its cost of capital is 8.7 percent.Suppose the firm converts to a debt-equity ratio of 0.65.The interest rate on the debt is 6.9 percent.What is its new WACC?
A) 7.99 percent
B) 8.13 percent
C) 8.36 percent
D) 8.44 percent
E) 8.61 percent
Correct Answer:
Verified
Correct Answer:
Verified
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