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A firm has a debt equity ratio of .55 and a tax rate of 35%. It's cost equity is 10.6% and it's pre-tax cost of
A firm has a debt equity ratio of .55 and a tax rate of 35%. It's cost equity is 10.6% and it's pre-tax cost of debt is 8.1%. What is the firms WAAC? A) 8.28% B) 8.71% C) 9.40% D) 9.71%
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Public Finance And Public Policy
Authors: Jonathan Gruber
6th Edition
1319105254, 9781319105259
