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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Corporate Finance With Connect Access Card
Authors: Stephen Ross ,Randolph Westerfield ,Jeffrey Jaffe
10th Edition
1259672484, 978-1259672484
