Solution-Consider the information for the following four

Consider the information for the following four firms which

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Consider the information for the following four firms.

Firm	Cash	Debt	Equity	rD	rE	tc
Eenie	0	150	150	5%	10%	40%
Meenie	0	250	750	6%	12%	35%
Minie	25	175	325	6%	11%	35%
Moe	50	350	150	7.50%	15%	30%

Which is the weighted average cost of capital for Meenie closest to?

A) 10.5%

B) 7.4%

C) 10.0%

D) 8.8%

Reference no: EM13479993

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