M&M Proposition 2: X-Pool Filters Ltd Has a Debt-To-Equity Ratio

question 42

Multiple Choice

M&M Proposition 2: X-Pool Filters Ltd has a debt-to-equity ratio of 0.5. If the company's cost of debt is 7% and its cost of equity is 13%, what is the appropriate WACC?

• A) 9%
• B) 10%
• C) 11%
• D) 13%.

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