The company uses only debt and common stock to finance its operations and maintains a...
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Accounting
The company uses only debt and common stock to finance its operations and maintains a debt-equity ratio of 0.39. The aftertax cost of debt is 5.1 percent, the cost of equity is 13.2 percent, and the tax rate is 21 percent. What is the weighted average cost of capital?
a. 12.14 percent
b. 11.68 percent
c. 10.23 percent
d. 10.02 percent
e. 10.93 percent
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