Kizspy Question: 23
(Choose 1 answer)
PJONESLOW Jom
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?
A. 8.17%
B. 6.35%
C. 8.80%
D. 7.44%
