Business, 31.12.2019 04:31, samantha9014

The firm's tax rate is 34%. the firm's pre-tax cost of debt is 8%; the firm's debt-to-equity ratio is 3; the risk-free rate is 3%; the beta of the firm's common stock is 1.5; the market risk premium is 9%.

calculate the weighted average cost of capital.

a) 8.09%

b) 8.51%

c) 9.05%

d) 9.57%

e) 9.76%

Answers: 2

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The firm's tax rate is 34%. the firm's pre-tax cost of debt is 8%; the firm's debt-to-equity ratio...