Suppose that a firm has 20% debts and 80% equity in its capital struct – McqOptions

MCQOPTIONS

1.	Suppose that a firm has 20% debts and 80% equity in its capital structure. The cost of debts and cost of equity are assumed to be 10% and 15% respectively, What is the overall cost of capital?
A.	11%
B.	12%
C.	13%
D.	14%
Answer» E.

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