15.    Paws Inc is a new company that is financed with 60% debt and 40% equity. Paws pays 6%interest on its debt and its equity investors expect a 15% return. Assuming no taxes, based on the above what is Paws WACC? a.    8.8% b.    9.2% c.    9.6% d.    10.0%

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Chapter2: Analysis Of Financial Statements
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15.    Paws Inc is a new company that is financed with 60% debt and 40% equity. Paws pays 6%interest on its debt and its equity investors expect a 15% return. Assuming no taxes, based on the above what is Paws WACC?


a.    8.8%
b.    9.2%
c.    9.6%
d.    10.0%

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