Kizspy | Question: 24
(Choose 1 answer)
Melba's Toast has a capital structure with 30 percent debt and 70 percent equity. Its pretax cost of debt is 6 percent, and its cost of equity is 10 percent. The firm's marginal corporate income tax rate is 35 percent. What is the appropriate WACC?
Α. 8.17%
Β. 6.35%
C. 8.80%
D. 7.44%
