5pts Question 20 Investment bankers provided estimates of ra for different capital structures as follows....
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5pts Question 20 Investment bankers provided estimates of ra for different capital structures as follows. wa 20% 3096 40% 896 8.5% 10% The beta of the firm is 1. re 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 10.28% The WACC is minimized for Wd = 30% and equals to 11.01% The WACC is minimized for Wd = 20% and equals to 11.01% The WACC is minimized for Wd - 30% and equals to 10.28%
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