Cadmium Electronics Inc

question 54

Multiple Choice

Cadmium Electronics Inc. currently has a capital structure that is 40% debt and 60% equity. If the firm's cost of equity is 12%, the cost of debt is 8%, and the risk-free rate is 3%, what is the appropriate WACC?

• A) 8.4%
• B) 9.6%
• C) 10.4%
• D) 9.2%

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