Kelso Corp. has a cost of debt of 5% and a tax rate of 34%. Its weight on debt is 25% and its weight on equity is 75%. Its WACC is 8.325%. Which of the following is the only possible return on the unlevered firm (rU) ?
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Home » Business » Kelso Corp. has a cost of debt of 5% and a tax rate of 34%. Its weight on debt is 25% and its weight on equity is 75%. Its WACC is 8.325%. Which of the following is the only possible return on the unlevered firm (rU) ?