Business, 20.11.2020 14:00 nedannn

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? a) 7.17 percent
b) 9.05 percent
c) 6.38 percent
d) 5.36 percent

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A firm uses only debt and equity in its capital structure. The firm's weight of equity is 70 percent...

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