Question
A firm has a total value of $500,000 and equity valued at $300,000. What is the weighted average cost of capital if the cost of
A firm has a total value of $500,000 and equity valued at $300,000. What is the weighted average cost of capital if the cost of debt is 9% and the cost of equity is 14%?
A. 11%
B.7.98%
C.10.875%
D.12%
E.Impossible to calcuate
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Practical financial management
Authors: William r. Lasher
5th Edition
0324422636, 978-0324422634
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