Question
Clifford, Inc., has a target debtequity ratio of 0.80. Its WACC is 8.0 percent, and the tax rate is 35 percent. If the companys cost
Clifford, Inc., has a target debtequity ratio of 0.80. Its WACC is 8.0 percent, and the tax rate is 35 percent. If the companys cost of equity is 10 percent, what is the pretax cost of debt? SHOW YOUR WORK
A. pretax cost of debt would be 5.50%
B. pretax cost of debt would be 8.46%
C. pretax cost of debt would be 5.05%
D. pretax cost of debt would be 8.64%
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Crime And Punishment In The Future Internet
Authors: Sanja Milivojevic
1st Edition
036746800X, 978-0367468002
