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MC Qu. 84 Percy's Wholesale Supply has earnings before... Percy's Wholesale Supply has earnings before interest and taxes of $121,000. Both the book and the
MC Qu. 84 Percy's Wholesale Supply has earnings before...
Percy's Wholesale Supply has earnings before interest and taxes of $121,000. Both the book and the market value of debt is $190,000. The unlevered cost of equity is 14.7 percent while the pretax cost of debt is 8.6 percent. The tax rate is 35 percent. What is the firm's weighted average cost of capital? Which of the following is the correct answer: |
13.07 percent |
11.94 percent |
14.37 percent |
12.65 percent |
14.01 percent |
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