The following information relates to the Falcon Division of Xenon Enterprises: Interest rate on debt capital 8%Cost of equity capital 12%Market value of debt capital$50millionMarket value of equity capital$80millionIncome tax rate 30%On the basis of this information, Falcon's weighted-average cost of capital is closest to:
A. 8.3%.
B. 7.3%.
C. 10.8%.
D. 9.5%.
E. None of the answers is correct.
Answer: D
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Interactive voice response directs customers to use touch-tone phones or keywords to navigate or provide information.
Answer the following statement true (T) or false (F)