Question: Alfa corp has a capital structure that is based on $25 million in outstanding debt with a required return of 8%, 115 million in equity

Alfa corp has a capital structure that is based on $25 million in outstanding debt with a required return of 8%, 115 million in equity shares with a required return of 12%, and a tax rate of 35%?

1. 10.35%

2. 10.64%

3. 10.40%

4. 10.78%

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