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A firm requires an investment of $30,000. The firm's debt cost of capital is 7%, and its return on equity is 15%. If the firm's

A firm requires an investment of $30,000. The firm's debt cost of capital is 7%, and its return on equity is 15%. If the firm's pre-tax WACC is 13%, how much did the firm borrow?

A.

$10,000

B.

$7,500

C.

$12,500

D.

$5,000

E.

$15,000

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