Question
The Ferns Inc.s cost of equity is 16 percent and its after-tax cost of debt is 5 percent. What is the firm's weighted average cost
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The Ferns Inc.s cost of equity is 16 percent and its after-tax cost of debt is 5 percent. What is the firm's weighted average cost of capital (WACC) if its equity accounts for 70% of the firm value (E/V=70%)?
14.93 percent
12.70 percent
13.82 percent
15.14 percent
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Intermediate Financial Management
Authors: Eugene F. Brigham, Phillip R. Daves
7th Edition
0030333288, 9780030333286
