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Homework answers / question archive / A firm’s weighted average cost of capital is 20%
A firm’s weighted average cost of capital is 20%. The corporate tax rate is 40% and its cost of debt and equity are 25% and 30% respectively. What is the firm’s debt to equity ratio?
| A. 1.5 | |
| B. 0.5 | |
| C. 2 | |
| D. 2/3 |
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