单选题
A company is planning a $50 million expansion. The expansion is to be
financed by selling $20 million in new debt and $30 million in new common stock.
The before-tax required return on debt is 9 percent and 14 percent for equity.
If the company is in the 40 percent tax bracket, what is the marginal weighted
average cost of capital?
- A. 10.6%.
- B. 9.0%.
- C. 10.0%.