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Carrington Corporations after-tax cost of debt is 9%, and its cost of equity is 15%. Of the following interest rates: 8%, 10%, 12%, 14%, 16%,
Carrington Corporations after-tax cost of debt is 9%, and its cost of equity is 15%. Of the following interest rates:
8%, 10%, 12%, 14%, 16%, 18%, 20%
Using what you know about weighted average cost of capital (WACC), which of the above are possible WACCs for Carrington? Pick all that you cannot rule out.
A.
12%
B.
12%, 14%, 16%
C.
10%
D.
Any of these are possible
E.
14%
F.
8%, 10%, 12%
G.
10%, 12%, 14%
H.
14%, 16%, 18%, 20%
I.
16%, 18%, 20%
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