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A Firm Requires an Investment of $30,000 and Borrows $20,000

Question 39

Multiple Choice

A firm requires an investment of $30,000 and borrows $20,000 at 9%. If the return on equity is 15% and the tax rate is 30%, what is the firm's WACC?

A) 9.20%
B) 7.36%
C) 11.04%
D) 18.40%

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