Plasti-tech Inc.is financed 60% with equity and 40% with debt.Currently,its debt has a pretax interest rate of 12%.Plasti-tech's common stock trades at $15.00 per share and its most recent dividend was $1.00.Future dividends are expected grow by 4%.If the tax rate is 34%,what is Plasti-tech's WACC?
A) 7.39%
B) 9.57%
C) 9.73%
D) 11.20%
Correct Answer:
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