Question: QUESTION 4 A firm has determined that it can minimize its weighted average cost of capital (WACC) with 40% debt and 60% equity in its

QUESTION 4 A firm has determined that it can minimize its weighted average cost of capital (WACC) with 40% debt and 60% equity in its capital raise. If the firm's cost of debt is 9% before taxes, the cost of equity is estimated to be 12% before taxes, and the tax rate is 40%, what is the firm's WACC? a. 432% b.6.48% c. 938% d. 10.8%

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