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A firm has $500 in debt at a cost of 7%, a 34% tax rate, a total firm value of $1,100, and an unlevered return
A firm has $500 in debt at a cost of 7%, a 34% tax rate, a total firm value of $1,100, and an unlevered return of 14%. What is the firms WACC?
A) 9.24%
B) 9.74%
C) 9.88%
D) 10.67%
E) 11.84%
Not sure how to do it, help would be much appreciated.
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