alleryStart learning →Market values: equity 800, debt 200; Ke 13%, Kd 10%, tax 20%. WACC?
A12.4%
B13%
C11.5%
D12%
Answer & Solution
Correct answer: D. 12%
0.8 x 13 = 10.4 and 0.2 x 10 x 0.8 = 1.6, so 12%.
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