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corie corie
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6 years ago
Suppose a firm's stock valuation is worth three times its outstanding debt.  The firm's stock earns an annual return of 6 percent and pays 8 percent on the outstanding debt.  What is the firm's company cost of capital?
A) 4.5 percent
B) 6 percent
C) 6.5 percent
D) 8 percent
Textbook 
Microeconomics

Microeconomics


Edition: 8th
Author:
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oracledarrenoracledarren
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#1
Posts: 455
Rep: 15 1
6 years ago
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corie Author
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6 years ago
Smart ... Thanks!
annakc
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Yesterday
Correct Slight Smile TY
Ctownsend
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2 hours ago
Brilliant ツ
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