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 50%
When the cost of equity is 14%, the cost of debt is 8%, the marginal tax rate is 30% and the capital structure is 50% equity and 50% debt, what must be the weighted average cost of capital (WACC)?
| A) 22% | |
|
| B) 8% |
|
| C) 11% |
|
| D) 2% |
|
| E) 9.8% |
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Financial Reporting Financial Statement Analysis And Valuation
Authors: James M Wahlen, Stephen P Baginskl, Mark T Bradshaw
10th Edition
0357722094, 978-0357722091
