问题
单项选择题
A company is planning a $50 million expansion. The expansion is to be financed by selling $20 million in new debt and $30 million in new common stock. The before-tax required return on debt is 9 percent and 14 percent for equity. If the company is in the 40 percent tax bracket, what is the marginal weighted average cost of capital()
A. 10.6%.
B. 9.0%.
C. 10.0%.
答案
参考答案:A
解析:
4 ×9 × (1 -0.4) +0.6 ×16 =0.106.