Exam F3 Topic 1 Question 382 Discussion

Actual exam question for CIMA's F3 exam
Question #: 382
Topic #: 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?

Suggested Answer: C Vote an answer

by Mamie at Aug 14, 2025, 11:38 PM

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