A firm has debt of 90000 equity of 140000 a leveraged value


A firm has debt of $90,000, equity of $140,000, a leveraged value of $100,000, a cost of debt of 6%, a cost of equity of 12%, and a tax rate of 40%. What is the firm's weighted average cost of capital?

A. 8.15%

B. 8.40%

C. 8.70%

D. 9.30%

E. None of these

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Financial Management: A firm has debt of 90000 equity of 140000 a leveraged value
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