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The unlevered cost of capital of a given firm is given by 20%, while its debt is given by $75,000,000. The pre-tax cost of debt

The unlevered cost of capital of a given firm is given by 20%, while its debt is given by $75,000,000. The pre-tax cost of debt (equal to the risk-free rate) is given by 10%. The levered value of the firm is given by $200,000,000, while its equity value is given by $125,000,000. The tax rate is 20%. The WACC of this firm is given by:

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15.5%

16.5%

17.5%

18.5%

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