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Buff Inc has a pre-tax cost of debt of 7.6 percent, a cost of equity of 14.3 percent. The firm has 220,000 shares of
Buff Inc has a pre-tax cost of debt of 7.6 percent, a cost of equity of 14.3 percent. The firm has 220,000 shares of common stock outstanding at a market price of $27 a share. The bonds issued trading at face value, have a total market value of $550,000. The company's tax rate is 37 percent. What is the firm's weighted average cost of capital? O 10.84% O 11.32% O 13.49% O 14.81%
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Finance Applications and Theory
Authors: Marcia Cornett, Troy Adair
3rd edition
1259252221, 007786168X, 9781259252228, 978-0077861681
