Question
PepsiCo can borrow in the debt market at 8%, and it currently has a debt-to-equity ratio (D/E) of 50%. If the cost of equity is
PepsiCo can borrow in the debt market at 8%, and it currently has a debt-to-equity ratio (D/E) of 50%. If the cost of equity is 12%, what is the WACC? Assume that the corporate tax rate is 25%, and the M&M world with taxes holds true.
A 10%
B 11%
C 12%
D 8%
E Correct answer is not available
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Health Care Finance Basic Tools For Nonfinancial Managers
Authors: Judith J. Baker, R.W. Baker
3rd Edition
076377894X, 978-0763778941
