Question
A firm requires an investment of $60,000 and borrows $40,000 at 8%. If the return on equity is 16% and the tax rate is 30%,
A firm requires an investment of $60,000 and borrows $40,000 at 8%. If the return on equity is 16% and the tax rate is 30%, what is the firm's WACC?
A.) 7.25%
B.) 9.07%
C.) 18.13%
D.) 10.88%
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The Handbook Of Financial Modeling
Authors: Jack Avon
1st Edition
1430262052, 978-1430262053
