Calculate the after-tax WACC based on the following information:nominal interest rate on debt = 12%;cost of common equity = 25%;common equity = $700,000;interest-bearing debt = $300,000;and a tax rate = 25%.
A) 15%
B) 16.4%
C) 20.2%
D) 22.8%
E) 30%
Correct Answer:
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