Multiple Choice
Find the weighted average cost of capital for a firm that has a debt-to-equity ratio of 1½,a tax rate of 34 percent,a levered cost of equity of 12 percent and a pre-tax cost of debt of 10 percent.
A) 9.6 percent
B) 7.968 percent
C) 8.76 percent
D) none of the options
Correct Answer:
Verified
Correct Answer:
Verified
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