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Q12. 1-35 ABCD D What is the expected rate of return to equityholders if the firm has a 35% tax rate, a 10% rate
Q12. 1-35 ABCD D What is the expected rate of return to equityholders if the firm has a 35% tax rate, a 10% rate of interest paid on debt, a 15% WACC and a 60% debt asset ratio? 12.50%. 21.25%. 22.50%. 27.75%. 0.15 = (1-0.35)*0.10*0.60 + X*(1 - 0.60); X = 27.75%.
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Fraud Examination
Authors: W. Steve Albrecht, Chad O. Albrecht, Conan C. Albrecht, Mark F. Zimbelman
5th edition
1305079140, 978-1305079144
