Question
Find the weighted average cost of capital for a firm that has a debt-to-equity ratio of 1, a tax rate of 34%, a levered cost
Find the weighted average cost of capital for a firm that has a debt-to-equity ratio of 1, a tax rate of 34%, a levered cost of equity of 12% and a pre-tax cost of debt of 10%.
A. 9.6%
B. 7.968%
C. 8.76%
D. none of the above
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker, Neil R. Dworkin
5th Edition
1284118215, 978-1284118216
