Question
Question #17: A company has a debt-to-equity ratio of 2, a before-tax cost of debt of 6%, and a cost of equity of 12%. If
Question #17: A company has a debt-to-equity ratio of 2, a before-tax cost of debt of 6%, and a cost of equity of 12%. If the tax rate is 15%, what is the company's weighted average cost of capital (WACC)?
A). 7.4%
B). 9.6%
C). 8%
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Financial Informatics An Information Based Approach To Asset Pricing
Authors: Dorje C Brody, Lane Palmer Hughston, Andrea Macrina
1st Edition
9811246483, 978-9811246487
