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A Firm Requires an Investment of $30,000 and Borrows $10,000

Question 38

Multiple Choice

A firm requires an investment of $30,000 and borrows $10,000 at 6%.If the tax rate is 30%,and the firm's WACC is 11.4%,what is the firm's cost of equity?


A) 15%
B) 14.1%
C) 5.4%
D) 17.4%
E) 15.6%

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