What is the WACC for a firm with 50% debt and 50% equity that pays 12% on its debt, 20% on its equity, and has a 40% tax rate?
A) 9.6%
B) 12.0%
C) 13.6%
D) 16.0% WACC = (.5 x (.12 x .6) ) + (.5 x .2)
= 3) 6% + 10%
Correct Answer:
Verified
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