Question
Danida Inc. has a target debt-equity ratio of 1.15. Its WACC is 7.5%, and the tax rate is 30%. If Danida's cost of equity is
Danida Inc. has a target debt-equity ratio of 1.15. Its WACC is 7.5%, and the tax rate is 30%. If Danida's cost of equity is 12%, what is its pre-tax cost of debt?
Multiple Choice
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6.23%
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4.03%
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8.43%
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7.33%
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5.13%
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Financial Performance
Authors: Marc Bertoneche, Rory Knight
1st Edition
0750640111, 978-0750640114
