Question
A firm has a debt-equity ratio of 0.6 and a tax rate of 40 percent. Its cost of equity is 10 percent and its before-tax
A firm has a debt-equity ratio of 0.6 and a tax rate of 40 percent. Its cost of equity is 10 percent and its before-tax cost of debt is 8 percent. What is the firms WACC?
Group of answer choices 6.88% 9.25% 8.05%
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Fundamentals Of Corporate Finance
Authors: Richard A. Brealey, Marcus, Alan J, Myers, Stewart C.
2nd Edition
0070074860, 9780070074866
