Suppose that Hanna Nails, Inc.'s capital structure features 45 percent equity, 55 percent debt, and that its before-tax cost of debt is 5 percent, while its cost of equity is 9 percent. If the appropriate weighted average tax rate is 40 percent, what will be Hanna Nails' WACC?
A)5.18 percent
B)5.70 percent
C)6.80 percent
D)7.00 percent

Question

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The Answer of Suppose that Hanna Nails, Inc.'s capital structure features 45 percent equity, 55 percent debt, and that its before-tax cost of debt is 5 percent, while its cost of equity is 9 percent. If the appropriate weighted average tax rate is 40 percent, what will be Hanna Nails' WACC?
A)5.18 percent
B)5.70 percent
C)6.80 percent
D)7.00 percent

Suppose That Hanna Nails, Inc