Business
Business, 27.11.2020 23:10, durham953

Omni Consumer Products (OCP) has equity with a market value of $900 million and debt with a value of $600 million. If OCP’s cost of equity is 18% and its weighted average cost of capital is 13%, what is OCP’s cost of debt? Assume no taxes. a. 5.5%
b. 8.0%
c. 11.5%
d. 16.3%
e. 23.8%

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Answers: 3

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