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Calculate the weighted cost of capital (WACC) for the multinational firm. Multinational firm: Worldwide cost of debt (r d , W )= 2% Worldwide cost

Calculate the weighted cost of capital (WACC) for the multinational firm.

Multinational firm:

Worldwide cost of debt (r_d,_W)= 2%

Worldwide cost of equity (r_e,_W)= 6%

Worldwide tax rate (t_W)= 10%

w_d,_W= 50% = percentage of debt financing

w_e,_W= 50% = percentage of equity financing

A. 3.9%

B. 4.9%

C. 5.3%

D. 6.8%

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