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averagepretaxcostofdebt=8 %, averagecostofequity = 13.6 %, averagetaxrate=40 %, thefirmraises funds by borrowing 20 million dollar and issuing equity in the amount of 30 million dollar.
- averagepretaxcostofdebt=8 %,
- averagecostofequity = 13.6 %,
- averagetaxrate=40 %,
- thefirmraises funds by borrowing 20 million dollar and issuing equity in the amount of 30 million dollar.
The after-tax weighted average cost of capital of this firm is:
13.60%
10.08%
11.36%
4.8%
None of the answers in this question are correct.
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
14th edition
133879879, 978-0133879872
