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Please show the calculate step and answer 1. A firm requires an investment of $30,000 and borrows $15,000 at 7%. If the return on equity
Please show the calculate step and answer
1. A firm requires an investment of $30,000 and borrows $15,000 at 7%. If the return on equity is 19%, what is the firm's pretax WACC?
Select one:
A. 13%
B. 6.5%
C. 15.6%
D. 18.2%
2. A firm has a market value of equity of $30,000. It borrows $7500 at 8%. If the unlevered cost of equity is 16%, what is the firm's cost of equity capital?
Select one:
A. 9.0%
B. 18.0%
C. 21.6%
D. 25.2%
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