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The interest rate on debt is 9%, the required return on equity is 12%, the tax rate is 33.3%. The company is 1/3 debt financed.
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The interest rate on debt is 9%, the required return on equity is 12%, the tax rate is 33.3%.
The company is 1/3 debt financed.
The WACC is:
A. 10%
B. 11%
C. 9%
D. 12%
E. 6%
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International Financial Reporting And Analysis
Authors: David Alexander, Ann Jorissen, Martin Hoogendoorn
8th Edition
978-1473766853, 1473766850
