MCQOPTIONS
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| 1. |
If the weighting of equity in total capital is 1/3, that of debt is 2/3, the return on equity is 15% that of debt is 10% and the corporate tax rate is 32%, what is the Weighted Average Cost of Capital (WACC)? |
| A. | 10.533% |
| B. | 7.533% |
| C. | 9.533% |
| D. | 11.350% |
| Answer» D. 11.350% | |