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A Firm Requires an Investment of $30,000 and Borrows $20,000

Question 34

Multiple Choice

A firm requires an investment of $30,000 and borrows $20,000 at 7%.If the return on equity is 15% and the tax rate is 30%,what is the firm's WACC?


A) 8.27%
B) 9.13%
C) 10.4%
D) 8.91%
E) 9.67%

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