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A firm requires an investment of $20,000. The firm's debt cost of capital is 6%, and its return on equity is 15%. If the firm's

A firm requires an investment of $20,000. The firm's debt cost of capital is 6%, and its return on equity is 15%. If the firm's pre-tax WACC is 10.5%, how much did the firm borrow?

A. $8,000 B. $14,000 C. $20,000 D. $10,000 E. $12,000

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