[Solved] A firm is calculating its WACC. Which of

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Posted on Sep 02, 2024

A firm is calculating its WACC. Which of the following interest rates should the company use for the calculation of the cost of debt rd?

A. The historic interest rate of its debt.

B. An average of the interest rates it pays on its current debt.

C. The company's marginal interest rate.

D. The highest interest rate it pays on its current loans.

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