What Is the Expected Rate of Return to Equityholders If

question 48

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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