Question
A firm has a capital structure of 40% debt and 60% equity. Debt can be issued at a return of 9%, while the cost of
A firm has a capital structure of 40% debt and 60% equity. Debt can be issued at a return of 9%, while the cost of equity for the firm is 12%. What is the firms WACC if the tax rate facing the firm is 30%?
| a. | 9.72% | |
| b. | 10.35% | |
| c. | 8.92% | |
| d. | 11.78% |
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The Economics Of Money Banking And Financial Markets
Authors: Frederic S. Mishkin
12th Global Edition
1292268859, 978-1292268859
