Question: e) 3.0% Question 9 (1 point) ABC Inc. will raise funds to finance a project using 50 % bonds and 50 % stocks. The cost

e) 3.0% Question 9 (1 point) ABC Inc. will raise funds to finance a project using 50 % bonds and 50 % stocks. The cost of bond financing 12 % (pre-tax), and the cost of stock financing is 20 %. If ABC pays 40% tax, the weighted average cost of capital for ABC is a) 16.0 % b) 14.0 % e 12.4 % d) 13.6 %

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