Sask Inc.'s cost of equity is 12%. The before-tax cost of debt is 5.50%, and...
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Sask Inc.'s cost of equity is 12%. The before-tax cost of debt is 5.50%, and the tax rate is 22%. The target capital structure consists of 40% debt and 60% common equity. What is the companys WACC if all equity is from retained earnings?
a. 8.20%
b. 8.92%
c. 9.40%
d. 7.72%
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