Presley Cleaners has an all-equity capital structure with an equity value of $94,260.The expected earnings are $11,320 based on estimated sales of $60,000.The firm pays no taxes and can borrow at 6.4 percent.What is the value of RWACC?
A) 12.01%
B) 12.29%
C) 11.83%
D) 12.34%
E) 12.16%
Correct Answer:
Verified
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