Cost of the debt and equity


Calculate a firm's WACC given that the total value of the firm is $2,000,000, $600,00 of which is debt, the cost of the debt and equity is 10% and 15% respectively, and the firm pays no taxes:

  1. 9.0%
  2. 11.5%
  3. 13.5%
  4. 14.4%

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Business Management: Cost of the debt and equity
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