Question: Question 23 (2 points) Consider a firm that has $1 million of debt and $3 million of equity. The rate of return for debt is

Question 23 (2 points) Consider a firm that has $1 million of debt and $3 million of equity. The rate of return for debt is 8% and the rate of return for equity is 12%. The corporate tax rate is 40%. What is the weighted-average cost of capital? 9.60% 9.80% 10.20% 10.67% 11.00% Previous Page Next Page Page 23 of 47

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