A firm has a cost of debt of 7.5 percent and a cost of equity of 16.2 percent.The debt-equity ratio is 0.45.There are no taxes.What is the firm's weighted average cost of capital?
A) 11.75 percent
B) 12.29 percent
C) 13.50 percent
D) 14.47 percent
E) 16.20 percent
Correct Answer:
Verified
Q72: Forbidden Fruit Extracts expects its earnings before
Q73: Brick House Cafe has a 35 percent
Q74: Jasper Industrial has no debt outstanding and
Q75: An all-equity firm has a return on
Q76: Kline Construction is an all-equity firm that
Q78: A firm has a weighted average cost
Q79: Roller Coaster's has a cost of equity
Q80: Newborn Nursery has 8,000 bonds outstanding with
Q81: Glass Growers has no debt.Its cost of
Q82: You are considering a firm under three
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents