Question
A firm requires an investment of $120000 financed with $80000 of equity and the remainder with debt. If the return on equity is 10% the
A firm requires an investment of $120000 financed with $80000 of equity and the remainder with debt. If the return on equity is 10% the cost of debt is 6% and the tax rate is 40% what is the firm's WACC?
Please show your work thanks!
A) 6.64%
B) 7.86%
C) 7.76%
D) 8.24%
E) 8.80%
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Dark Finance
Authors: Fabio Mattioli
1st Edition
1503611655, 978-1503611658
