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Assume that the firm is 30% financed by debt and 70% financed by equity. Its cost of debt is 7% and the cost of equity
Assume that the firm is 30% financed by debt and 70% financed by equity. Its cost of debt is 7% and the cost of equity is 18%. The tax rate is 40%. What is the firms WACC?
| A. | 14.70% | |
| B. | 9.36% | |
| C. | 13.86% | |
| D. | 8.75% |
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An Introduction To Financial Markets A Quantitative Approach
Authors: Paolo Brandimarte
1st Edition
1118014774, 9781118014776
