Kizspy | Question: 22 (Choose 1 answer)
Cadmium Electronics Inc. currently has a capital structure that is 40 percent debt and 60 percent equity. If the firm's cost of equity is 12 percent, the cost of debt is 8 percent, the risk-free rate is 3 percent and the firm pays no tax, what is the appropriate WACC?
Α. 8.4%
B. 9.6%
C. 10.4%
D. 9.2%
