Country Kitchen's cost of equity is 15.3 percent and its aftertax cost of debt is 6.9 percent.What is the firm's weighted average cost of capital if its debt-equity ratio is 0.58 and the tax rate is 30 percent?
A) 8.94 percent
B) 11.47 percent
C) 12.21 percent
D) 12.28 percent
E) 13.01 percent
Correct Answer:
Verified
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