A Firm Has Debt of $5,000,equity of $16,000,a Leveraged Value

question 47

Multiple Choice

A firm has debt of $5,000,equity of $16,000,a leveraged value of $8,900,a cost of debt of 8%,a cost of equity of 12%,and a tax rate of 34%. What is the firm's weighted average cost of capital?

• A) 7.29%
• B) 7.94%
• C) 8.87%
• D) 10.40%
• E) 11.05%

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Definitions:

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The state of being fully developed physically or mentally, often associated with adulthood and the ability to respond to the environment in an appropriate manner.

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