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Answer this question based on the following data for a global firm. average pretax cost of debt = 8% average cost of equity = 13.6%
Answer this question based on the following data for a global firm.
- average pretax cost of debt = 8%
- average cost of equity = 13.6%
- average tax rate = 40%
- the firm raises funds by borrowing 20 million dollars and issuing equity in the amount of 30 million dollars.
The after-tax weighted average cost of capital of this firm is:
- 10.08%
- none of the answers in this question are correct
- 4.8%
- 13.60%
- 11.36%
Please be aware they are asking for after-tax not before
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