One advantage of debt financing over equity financing is

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Reference no: EM131179604

One advantage of debt financing over equity financing is?

a) tax deductible dividends.

b) tax deductible interest.

c) tax deductible principal repayment.

d) tax free interest income.

What is the WACC for a firm using 65% equity with a required return of 15%; 35% debt with a YTM of 8%, and a tax rate of 35%?

a) 10.72%

b) 11.07%

c) 12.55%

d) 11.57%

Reference no: EM131179604

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