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Use the Table for the Question(s) Below

Question 11

Multiple Choice

Use the table for the question(s) below.
Consider the following income statement for Kroger Inc. (all figures in $ Millions) :
Use the table for the question(s) below. Consider the following income statement for Kroger Inc. (all figures in $ Millions) : -Assume that investors hold Google stock in retirement accounts that are free from personal taxes.Also assume that Google's current pre-tax WACC is 12%.If Google were to issue sufficient debt to give them a debt to value ratio of 0.5,then the Google's after-tax WACC would be closest to: A) 10.4% B) 12.8% C) 13.0% D) 15.0% E) 16.0%
-Assume that investors hold Google stock in retirement accounts that are free from personal taxes.Also assume that Google's current pre-tax WACC is 12%.If Google were to issue sufficient debt to give them a debt to value ratio of 0.5,then the Google's after-tax WACC would be closest to:


A) 10.4%
B) 12.8%
C) 13.0%
D) 15.0%
E) 16.0%

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