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Full Exam Name: DSCI Certified Privacy Lead Assessor DCPLA certification
Vendor Name: DSCI
Exam Code: DCPLA
Questions with Answers (PDF) 65
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NEW QUESTION: 1
A company has:
* $7 million market value of equity
* $5 million market value of debt
* WACC of 9.375%
* Corporate income tax rate of 15%
According to Modigliani and Miller's theory of capital structure with tax, what is the ungeared cost of equity?
A. 10.27%
B. 10.00%
C. 8.79%
D. 14.52%
Answer: B

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