Undetermined Corporation currently has a 10% weighted average cost of capital. It is concerned that its after-tax cost of debt will increase in the near future by 2%. If Undetermined finances its projects with 30% debt, then what will the new weighted average cost of capital for Undetermined be?
A) 12.0%
B) 13. %
C) 10.6%
D) none of the above
Correct Answer:
Verified
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