Business, 04.12.2019 02:31 joThompson

The bigelow company has a cost of equity of 12 percent, a pre-tax cost of debt of 7 percent, and a tax rate of 35 percent.

what is the firm's weighted average cost of capital if the debt-equity ratio is .60?

a. 6.58 percent

b. 9.21 percent

c. 10.01 percent

d. 10.13 percent

e. 11.11 percent

Answers: 3

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The bigelow company has a cost of equity of 12 percent, a pre-tax cost of debt of 7 percent, and a t...

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