A firm has debt of $23,200,equity of $43,500,an aftertax cost of debt of 7.14 percent,a cost of equity of 12.8 percent,and a tax rate of 35 percent.What is the firm's weighted average cost of capital?
A) 9.96%
B) 7.94%
C) 8.87%
D) 10.83%
E) 10.05%
Correct Answer:
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