alleryStart learning →Debt 30% (after-tax 7%), preference 20% (10%), equity 50% (14%). WACC?
A11.1%
B12.0%
C10.3%
D10.2%
Answer & Solution
Correct answer: A. 11.1%
0.3 x 7 + 0.2 x 10 + 0.5 x 14 = 2.1 + 2 + 7 = 11.1%.
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