A firm uses only debt and equity in its capital structure, Ask an Expert

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A firm uses only debt and equity in its capital structure. The firm's weight of equity is 70 percent. The firm's cost of equity is 13 percent and it has a tax rate of 30 percent. If the firm's WACC is 11 percent, what is the firm's before-tax cost of debt?

7.17 percent

9.05 percent

6.38 percent

5.36 percent

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92089692

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