ABC, Inc. has a target debt-equity ratio of 0.4. Its cost of equity is 16 percent and

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ABC, Inc. has a target debt-equity ratio of 0.4. Its cost of equity is 16 percent and its cost of debt is 8 percent. If the tax rate is 32 percent, what is ABC's WACC?

a. 10.3847%

b. 11.6723%

c. 12.9829%

d. 13.9935%

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Corporate Finance Demystified By T Adair

ISBN: B003R9TYRG

1st Edition

Authors: T Adair

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Question Posted: May 31, 2024 10:09 AM

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ABC, Inc. has a target debt-equity ratio of 0.4. Its cost of equity is 16 percent and

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Corporate Finance Demystified By T Adair

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