Goremann Corp (GC) has a total market value of $524 million. The market value of...
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Goremann Corp (GC) has a total market value of $524 million. The market value of equity is $300 million and the company carries debt valued at $224 million. The before-tax cost of debt is 9 percent and the cost of equity is estimated at 14 percent. The statutory company tax rate is 35 percent. What is the weighted-average cost of capital for the company closest to?
| A. | 11.63%. | |
| B. | 9.34%. | |
| C. | 10.52%. | |
| D. | 12.05%. |
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