How Much Is Added to a Firm's Weighted-Average Cost of Capital

question 2

Multiple Choice

How much is added to a firm's weighted-average cost of capital for 45% debt financing with a required rate of return of 10% and a tax rate of 35%?

• A) 1.29%
• B) 2.93%
• C) 3.50%
• D)4.50%

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