A Firm Requires an Investment of $30,000 and Borrows $15,000

question 91

Multiple Choice

A firm requires an investment of $30,000 and borrows $15,000 at 6%.If the cost of equity is 18%,and the firm's WACC is 10.8%,what is the firm's tax rate?

• A)40%
• B)35%
• C)30%
• D)45%
• E)50%

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