What Is the Expected Rate of Return to Equityholders If

question 112

Multiple Choice

What is the expected rate of return to equityholders if the firm has a 35% tax rate,a 10% rate of interest paid on debt,a 15% WACC,and a 60% debt-asset ratio?

• A) 12.50%
• B) 21.25%
• C) 22.50%
• D) 27.75%

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