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1.14) A rm's stockholders expect an 18% rate of return, and there is $26M in common stock and retained earnings. The firm has $9M in
1.14) A rm's stockholders expect an 18% rate of return, and there is $26M in common stock and retained earnings. The firm has $9M in loans at an average rate of 8%. The firm has raised $18M by selling bonds at an average rate of 4%. If the firm has a tax rate of 34%. What is the minimum attract discount rate for the firm? a. 9.5% b. 10.5% c. 11.5% d. 12.5%
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