Post Utme Pan Atlantic University 2020 Commerce Question 43

Practice objective / multiple choice question 43 from the 2020 Post Utme Pan Atlantic University Commerce examination.

Post Utme Pan Atlantic University 2020 Commerce Objective / Multiple Choice
Question 43 POST_UTME_PAN-ATLANTIC_UNIVERSITY • 2020 • COMMERCE • objective

A company uses the weighted average cost of capital (WACC) method to calculate its cost of capital. If the company's cost of debt is 8% and its cost of equity is 12%, and the company has a tax rate of 25%, what is its WACC?

Answer Options

A. 9.50%
Correct Answer B. 10.00%
C. 10.50%
D. 11.00%
Correct Answer
B
Correct Option:
10.00%

About This Question

This is Post Utme Pan Atlantic University 2020 Commerce Question 43. It is one of the objective questions from the 2020 Post Utme Pan Atlantic University Commerce examination.

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