Question
Question 8 Solve for the weighted average cost of capital (WACC) for Lightning Complex Corp (LC). LC has a beta of 2 and a debt-to-equity
Question 8
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Solve for the weighted average cost of capital (WACC) for Lightning Complex Corp (LC). LC has a beta of 2 and a debt-to-equity ratio 3. The risk-free rate is 3% and the market risk premium 8%. LC pays a 8% interest rate on its debt.
| A. | Not enough information | |
| B. | 10.75% | |
| C. | 16.25% | |
| D. | 11.55% | |
| E. | 8.35% |
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
