Investment bankers provided estimates of ra for different capital structures as follows. w 20% 30%...
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Investment bankers provided estimates of ra for different capital structures as follows. w 20% 30% 40% ra 8% 8.5% 10% The beta of the firm is 1. RF is 6%, RPM is 6% and the tax rate is 40%. If the firm only has debt and common equity, which of the following is correct? The WACC is minimized for Wd -20% and equal to 11.01% The WACC is minimized for Wd - 30% and equal to 10.28% The WACC is minimized for Wd = 30% and equals to 11.01% The WACC is minimized for Wd -20% and equals to 10.28%
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