Presley Cleaners Has an All-Equity Capital Structure with an Equity

question 17

Multiple Choice

Presley Cleaners has an all-equity capital structure with an equity value of $94,260.The expected earnings are $11,320 based on estimated sales of $60,000.The firm pays no taxes and can borrow at 6.4 percent.What is the value of R_WACC?

• A)12.01%
• B)12.29%
• C)11.83%
• D)12.34%
• E)12.16%

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