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    Fundamentals of Corporate Finance Study Set 14
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    Exam 16: Capital Structure
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    A Firm Requires an Investment of $30,000 and Borrows $15,000
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A Firm Requires an Investment of $30,000 and Borrows $15,000

Question 3

Question 3

Multiple Choice

A firm requires an investment of $30,000 and borrows $15,000 at 7%. If the return on equity is 19%, what is the firm's pretax WACC?


A) 13%
B) 6.5%
C) 15.6%
D) 18.2%

Correct Answer:

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