Multiple Choice
A firm has $56 million of common stock and $32 million of debt.The cost of equity is 11.4%,and the pretax cost of debt is 5.7%.If the firm's tax rate is 20%,what is the firm's WACC?
A) 8.91%
B) 9.33%
C) 8.55%
D) 7.98%
E) 10.13%
Correct Answer:
Verified
Correct Answer:
Verified
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