Calculate the Weighted Average Cost of Capital (WACC)based on the Following

question 73

Multiple Choice

Calculate the weighted average cost of capital (WACC) based on the following information: the equity multiplier is 1.66; the interest rate on debt is 13%; the required return to equity holders is 22%; and the tax rate is 35%.

• A)11.5%
• B)13.9%
• C)15.0%
• D)16.6%

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