The Cost of Capital for a Firm Which Uses 45

question 16

Multiple Choice

The cost of capital for a firm which uses 45% debt at an after-tax cost of 10% and 55% common stock at a 15% cost is:

• A)12.25%.
• B)12.50%.
• C)12.75%.
• D)13.00%.
• E)13.25%.

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