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- Q.
The company's asset beta is 1.1 and its tax rate is 30%. The risk free rate of return is 3% and the market risk premium is 4%. Which of the following is closest to the lowest marginal cost of capital for the company?
- A. 7.3%
- B. 7.4%
- C. 7.7%
- Correct Answer : A
Explanation :