Multiple Choice
A firm has debt of $7,000,equity of $12,000,a leveraged value of $8,900,a cost of debt of 7%,a cost of equity of 14%,and a tax rate of 30%. What is the firm's weighted average cost of capital?
A) 8.45%
B) 9.90%
C) 10.65%
D) 12.50%
E) 14.00%
Correct Answer:
Verified
Correct Answer:
Verified
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