The Felix Filter Corp. maintains a debt-equity ratio of .6. The cost of equity for Richardson Corp. is 16%, the cost of debt is 11% and the marginal tax rate is 30%. What is the weighted average cost of capital? (Round your answer to two decimal places.)
A) 8.38%
B) 12.89%
C) 11.02%
D) 13.00%
E) 14.13%
Correct Answer:
Verified
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