alleryStart learning →Equity 60%, debt 40%, Ke 15%, pre-tax Kd 10%, tax 30%. WACC?
A9.8%
B13%
C11.8%
D12.5%
Answer & Solution
Correct answer: C. 11.8%
0.6 x 15 = 9 and 0.4 x 10 x 0.7 = 2.8, giving 11.8%.
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