CFA Level I sample question

CFA Level I Capital Structure question

Corporate Issuers / Capital Structure

No-login practice

Capital Structure sample question

Choose an answer before revealing the explanation, key takeaway, and answer-choice review.

Question 1 of 1Score 0/1

Moderate

Corporate Issuers

Capital Structure

A firm has debt with book value of 300 million and market value of 360 million. Equity has book value of 500 million and market value of 840 million. Pretax cost of debt is 5%, cost of equity is 10%, and tax rate is 20%. Using market-value weights, WACC is closest to:

Report an issue

Question of the Week

Get one CFA Level I question by email

Receive a weekly practice question with answer-choice explanations and a short takeaway.