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If a Firm's Debt-To-Equity Ratio Is 3, What Is the Weighted

Question 23

Multiple Choice

If a firm's debt-to-equity ratio is 3, what is the weighted average cost of capital for the firm if the required rate of return on equity is 12.4% and the cost of debt is 8.4 %?


A) 11.40%
B) 11.06%
C) 9.73%
D) 9.40%

Correct Answer:

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