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Caribeanea Inc. is an import-export company specializing in products from Canada, Australia, and the West Coast. It can borrow in the debt market at 4%.

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Caribeanea Inc. is an import-export company specializing in products from Canada, Australia, and the West Coast. It can borrow in the debt market at 4%. Its cost of equity with 30% D/V ratio is 14%. Its corporate tax rate is 30%. If the M&M world of taxes holds true, what is the WACC for the firm with a 30% D/V financing? 9.80% 5.74% 6.16% 10.64%

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