Which a company can affect capital cost through

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Problem 1: A firm has determined that it can minimize its weighted average cost of capital (WACC) with 40% debt and 60% equity in its capital raise. If the firm's cost of debt is 9% before taxes, the cost of equity is estimated to be 12% before taxes, and the tax rate is 40%, what is the firm's WACC?

a. 4.32%
b. 6.48%
c. 9.36%
d. 10.8%

Problem 2: In weighted average cost of capital, a company can affect its capital cost through

a. policy of capital structure
b. policy of dividends
c. policy of investments
d. all of the above

Reference no: EM132795198

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