A firm must raise $10 million dollars in funding for a capital investment project. $2 million will be raised by issuing debt?

......................................c.11% ...............................................................

11 % is ......................right ..............................

Answer is11% as only interest is tax deductible.

Formula will be :

2x10% x(1-.3) +8x12%=1.4+9.6=11%

answer C ________________________________________________________

1. The correct answer was: c.11%. 

Thanks for the invitation,

I agree with the experts 

It is11% ..................option c) is the correct answer,