medium · Principles of Finance cost-of-capital-structure
A firm has a debt-to-equity ratio (D/E) of 1.0. If the cost of equity is 15%, the pre-tax cost of debt is 10%, and the tax rate is 40%, what is the firm's WACC?
- 9.00%
- 13.00%
- 10.50%
- 12.50%
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