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A firm has a market value of equity of $10,000. It borrows $20,000 at 9%. If the return on equity is 15% and the tax
A firm has a market value of equity of $10,000. It borrows $20,000 at 9%. If the return on equity is 15% and the tax rate is 30%, what is the firms WACC?
A.
9.20%
B.
7.36%
C.
11.04%
D.
18.40%
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