Question
When the cost of equity is 14%, the cost of debt is 8%, the marginal tax rate is 30% and the capital structure is 80%
When the cost of equity is 14%, the cost of debt is 8%, the marginal tax rate is 30% and the capital structure is 80% equity and 20% debt, what must be the weighted average cost of capital (WACC)?
| A) 14% | |
|
| B) 7.7% |
|
| C) 9.4% |
|
| D) 12.32% |
|
| E) 11% |
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Financial Accounting: A Business Process Approach
Authors: Jane L. Reimers
3rd edition
978-0136115274
