FSOT: 500 Test Prep Study Questions

Category - Mathematics & Statistics

A company's cost of equity is 12 percent and its debt ratio is 30 percent. The cost of debt is 7.5 percent and the tax rate is 35 percent. What is the firm's weighted average cost of capital?
  1. 7.71 percent
  2. 9.86 percent
  3. 13.05 percent
  4. 13.46 percent
Explanation
Answer: B - 9.86 percent
Was this helpful? Upvote!
Login to contribute your own answer or details

Top questions

Related questions

Most popular on PracticeQuiz