Multiple Choice
A firm has $8 billion of common stock and $14 billion of debt.The cost of equity is 7.5%,and the pretax cost of debt is 3.8%.If the firm's tax rate is 30%,what is the firm's WACC?
A) 4.84%
B) 3.6%
C) 5.15%
D) 4.42%
E) 5.65%
Correct Answer:
Verified
Correct Answer:
Verified
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