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A Firm Requires an Investment of $60,000 and Borrows $30,000

Question 65

Multiple Choice

A firm requires an investment of $60,000 and borrows $30,000 at 9%. If the return on equity is 22% and the tax rate is 35%, what is the firm's WACC?

A) 11.1%
B) 13.9%
C) 16.7%
D) 27.9%

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