Business, 24.06.2021 22:30, alechiathomas

Assume the corporate tax view of capital structure. Your unleveraged cost of capital is 13%. Your corporate tax rate is 30%. Your firm proposes to borrow $800 and its leveraged firm value is $1,600. What is your cost of capital under the proposed leveraging? A. 12.06%
B. 10.03%
C. 11.05%
D. 11.33%

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Assume the corporate tax view of capital structure. Your unleveraged cost of capital is 13%. Your co...