What Proportion of a Firm Is Equity Financed If the WACC

question 3

Multiple Choice

What proportion of a firm is equity financed if the WACC is 14%,the after-tax cost of debt is 7.0%,the tax rate is 35%,and the required return on equity is 18%?

• A) 54.00%
• B) 63.64%
• C) 70.26%
• D) 77.78%

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