Sites A Hide Time Remaining A Question 24 of 25 5 Points New Hampshire Corporation...
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Sites A Hide Time Remaining A Question 24 of 25 5 Points New Hampshire Corporation strives to maintain a capital structure of 45% debt and 55% equity. Investment bankers have stated that if the company were to borrow money, it would have to pay an annual interest rate of 6.7% (kd). The annual return on equity that common stockholders would expect for providing money (ke) is 9.8%. The firm's marginal income tax rate is a combined federal-plus-state 22%. What is its annual weighted average cost of capital (kA or WACC)? OA. 7.74% OB. 8.41% C. 8.10% D.7.28% E. 8.25 Reset Selection ch 0 PM 6/26/2010 hp
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