Taylor's has a beta of .78 and a debt-to-equity ratio of .2.The market rate of return is 10.6 percent,the tax rate is 34 percent,and the risk-free rate is 1.4 percent.The pretax cost of debt is 6.1 percent.What is the firm's WACC?
A) 8.08%
B) 7.67%
C) 8.16%
D) 9.96%
E) 7.82%
Correct Answer:
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