A Firm Has Debt of $12,000,a Leveraged Value of $26,400,a

question 9

Multiple Choice

A firm has debt of $12,000,a leveraged value of $26,400,a pre-tax cost of debt of 9.20 percent,a cost of equity of 17.6 percent,and a tax rate of 37 percent.What is the firm's weighted average cost of capital?

• A)11.47 percent
• B)11.52 percent
• C)11.69 percent
• D)12.23 percent
• E)12.48 percent

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