Question: Question 8 3 pts WOM Ltd currently has no debt outstanding. Its current cost of equity is 10% and the current market value of the

Question 8 3 pts WOM Ltd currently has no debt outstanding.

Question 8 3 pts WOM Ltd currently has no debt outstanding. Its current cost of equity is 10% and the current market value of the company is $30 million. The company is proposing to finance a quarter of its assets with debt at a cost of 5% per annum. Ignoring tax effects, the cost of the company's levered equity will be closest to: 15.00%. 13.75%. 11.67%. 0 11.25%

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