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WACC for a firm with 60% equity (cost 14%) and 40% debt (after-tax cost 7%) equals:
A11.2%
B10.5%
C12.0%
D9.8%
Answer & Solution
Correct answer: A. 11.2%
1. Identify what the question asks: this concept maps to wacc (§4).
2. Apply the framework or formula relevant to the topic.
3. Eliminate distractors and arrive at the correct option (A).
_Source: ICAI BoS CA Final Paper 2, Ch 13 "Business Valuation"_
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