medium · Principles of Finance
A firm has a Market Cap of $800 million and Debt with a market value of $200 million. Its Cost of Equity is 12% and its Pre-tax Cost of Debt is 6%.
If the tax rate is 25%, what is the WACC?
- 11.4%
- 10.5%
- 10.8%
- 9.0%
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