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A Firm Requires an Investment of $30 000 and Borrows

Question 47

Multiple Choice

A firm requires an investment of $30 000 and borrows $10 000 at 6%. If the return on equity is 15% and the tax rate is 30%, what is the firm's WACC?

A) 12.3%
B) 11.4%
C) 7.8%
D) 10.1%

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