katiems691 katiems691

08-01-2024
Business

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A firm is financed with 30% debt and 70% equity. It s cost of debt is 6% and it s cost of equity is 15%. What would be the weighted average cost of capital for the firm if the average tax rate is 35%?

a. 12.2%
b. 8.63%
c. 11.67%
d. 13.8%

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