Luther's Famous Barbeque has estimated the following cost of debt before-tax)and cost of equity.
What is the cost of capital at Luther's optimal capital structure given the above information and a 40% effective tax rate?
A)8.71%
B)8.89%
C)9.03%
D)9.37%

Question

Luther's Famous Barbeque has estimated the following cost of debt before-tax)and cost of equity. 
What is the cost of capital at Luther's optimal capital structure given the above information and a 40% effective tax rate?
A)8.71% 
B)8.89% 
C)9.03% 
D)9.37%

Quizplus · Accepted Answer

The Answer of Luther's Famous Barbeque has estimated the following cost of debt before-tax)and cost of equity. 
What is the cost of capital at Luther's optimal capital structure given the above information and a 40% effective tax rate?
A)8.71% 
B)8.89% 
C)9.03% 
D)9.37%

Luther's Famous Barbeque Has Estimated the Following Cost of Debt