Multiple Choice
Roller Coaster's has a WACC of 11.6 percent, ignoring taxes.It has a target capital structure of 60 percent equity and 40 percent debt and a cost of equity of 14.27 percent.What is the cost of debt?
A) 5.5 percent
B) 7.6 percent
C) 9.3 percent
D) 9.4 percent
E) 18.7 percent
Correct Answer:
Verified
Correct Answer:
Verified
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