105-Principles of Financial Manageme 207- My courses / BUSS 105-3-20202 / General / Test-3, BUSS-105 Sec-3;May 4th 2021 Majan Mining has found that its cost of common equity capital is 15 percent and its cost of debt capital is 12 percent. If the firm is financed with $250,000,000 of common shares (market value) and $750,000,000 of debt, then what is the after-tax weighted average cost of capital for Majan Mining if it is subject to a 35 percent marginal tax rate? of estion Select one: O a. None of these O b. 10.50 Oc. 9.60 Od. 11.57
105-Principles of Financial Manageme 207- My courses / BUSS 105-3-20202 / General / Test-3, BUSS-105 Sec-3;May 4th 2021 Majan Mining has found that its cost of common equity capital is 15 percent and its cost of debt capital is 12 percent. If the firm is financed with $250,000,000 of common shares (market value) and $750,000,000 of debt, then what is the after-tax weighted average cost of capital for Majan Mining if it is subject to a 35 percent marginal tax rate? of estion Select one: O a. None of these O b. 10.50 Oc. 9.60 Od. 11.57
Chapter11: The Cost Of Capital
Section: Chapter Questions
Problem 14PROB
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Transcribed Image Text:S 105-Principles of Financial Manağeme
Managemenl-3-2020,
rd / My courses/ BUSS 105-3-20202/ General / Test-3, BUSS-105 Sec-3 ;May 4th 2021
Majan Mining has found that its cost of common equity capital is 15 percent and its cost of debt
capital is 12 percent. If the firm is financed with $250,000,000 of common shares (market value)
and $750,000,000 of debt, then what is the after-tax weighted average cost of capital for Majan
Mining if it is subject to a 35 percent marginal tax rate?
an 2
et
ered
ed out of
Flag question
Select one:
O a. None of these
Ob. 10.50
Oc. 9.60
O d. 11.57
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