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I keep doing the math but my online quiz says its invalid option. I keep getting 9.6! The overall cost of capital for Julius Seven
I keep doing the math but my online quiz says its invalid option. I keep getting 9.6!
The overall cost of capital for Julius Seven is 11%. The firm is financed with 40% debt that offers a promised return of 7% and has an expected return of 6%. Julius Seven is in the 35% marginal tax bracket. What is Julius Seven's weighted average cost of capital?
10.2%
9.6%
11.0%
6.5%
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