Assume That XYZ Corporation Is a Levered Company with the Following

question 44

Multiple Choice

Assume that XYZ Corporation is a levered company with the following information: If XYZ's debt-to-total-market-value ratio is 40%,then its weighted average cost of capital,K,is:

• A)8%
• B)9%
• C)10%
• D)12%

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