Question 25 5 pts Firm A plans to acquire firm B. The acquisition would result in year-end incremental cash flows for Firm A as follows: Year 1: 3.75 million, Year 2: 4.65 million, and Year 3: 70.25 million. The cost of equity for firm A is 10.5%. Firm A is financed by 60% equity and 40% debt, and this leverage will remain unchanged after the acquisition. Firm A pays interest of 8% on its debt, which will also remain unchanged after the acquisition. What is the WACC? 9.50% 10.50% B.50% 12 50% 11.50% Previous Next