The shareholders of Tigerclaw Industries have invested $5 million and require a return of 20 per cent.The debtholders of Tigerclaw Industries receive an interest rate of 8 per cent.If the company's cost of capital is 11 per cent how much debt financing does the company use?
A) $20 million
B) $15 million
C) $10 million
D) $5 million
Correct Answer:
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