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Problem:

The Five & Dime store has a cost of equity of 15.8%, a pretax cost of 7.7%, and a tax rate of 35%.

Requirement:

Question: What is the firm's weighted average cost of capital if the debt-equity ratio is 0.40?

  • 10.18
  • 11.72
  • 12.72
  • 13.49
  • 14.93

Note: Show all workings.

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M91175261

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