Question
FIkes capital structure is 65% debt and 35% equity. The yield to maturity on the firms debt is 5.2% and the required return on Fikes
FIkes capital structure is 65% debt and 35% equity. The yield to maturity on the firms debt is 5.2% and the required return on Fikes equity is 9.3%. Given that the companys tax rate is 35%, what is Fikes weighted average cost of capital?
A. 6.215%
B. 7.857%
C. 7.638%
D. 5.452%
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Fundamentals Of Business Mathematics In Canada
Authors: F. Ernest Jerome, Jackie Shemko
3rd Edition
1259370151, 978-1259370151
