Homework Answers
Equity would be=($40,000-$10000)=$30,000
Pretax WACC=Respective weights*Respective returns
=(10,000/40,000*8)+(30,000/40,000*20)
=17%
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A firm requires an investment of $40,000 and borrows $10,000 at 8%. If the return on...
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Respecfully--Please answer all if you are willing to help. This is
over MM propositions anf optimal capital structure theories
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