Find the Weighted Average Cost of Capital for a Firm

question 26

Multiple Choice

Find the weighted average cost of capital for a firm that has a debt-to-equity ratio of 2, a tax rate of 40%, a levered cost of equity of 12% and a pre-tax cost of debt of 9%.

• A)7.6%
• B)7.968%
• C)10%
• D)none of the above

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Definitions:

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Health-Care Plan

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Changes made to the public assistance system aimed at reducing dependency on government aid by promoting job preparation and work.