alleryStart learning →Equity and debt in 50:50, Ke 12%, Kd 8%, tax 25%: WACC
A10%
B6%
C9%
D8%
Answer & Solution
Correct answer: C. 9%
0.5 x 12 = 6 and 0.5 x 8 x 0.75 = 3, a total of 9%.
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