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Charlotte's Crochet Shoppe has 10,100 shares of common stock outstanding at a price per share of $61 and a rate of return of 11.05 percent.
Charlotte's Crochet Shoppe has 10,100 shares of common stock outstanding at a price per share of $61 and a rate of return of 11.05 percent. The company also has 300 bonds outstanding, with a par value of $1,000 per bond. The pretax cost of debt is 5.85 percent and the bonds sell for 93 percent of par. What is the firm's WACC if the tax rate is 21 percent? Multiple Choice 9.84% 8.73% 8.57% 9.43% 9.05%
Charlotte's Crochet Shoppe has 10,100 shares of common stock outstanding at a price per share of $61 and a rate of return of 11.05 percent. The company also has 300 bonds outstanding, with a par value of $1,000 per bond. The pretax cost of debt is 5.85 percent and the bonds sell for 93 percent of par. What is the firm's WACC if the tax rate is 21 percent? Multiple Choice 9.84% 8.73% 8.57% 9.43% 9.05%
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