What the firm weighted average cost of capital

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Reference no: EM132894162

Problem 1: A firm is financed using 25% debt and 75% equity. If the cost of debt is 8% pa and the cost of equity 11% pa, the firm's weighted average cost of capital:

A. 11.0% pa
B. 10.25% pa
C. 11.5% pa
D. 8.0% pa

Reference no: EM132894162

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