A Firm Requires an Investment of $20,000 and Borrows $10,000

question 56

Multiple Choice

A firm requires an investment of $20,000 and borrows $10,000 at 8%.If the return on equity is 20%,what is the firm's pre tax WACC?

• A)14%
• B)15%
• C)16%
• D)17%

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