Find what is the firm weighted average cost of capital

Reference no: EM13266748

A firm has a debt to equity ratio of 0.6, a leveraged firm value of $9,200, a pre-tax cost of debt of 8 percent, a cost of equity of 16 percent, and a tax rate of 32 percent. What is the firm's weighted average cost of capital?

Explain how you calculated the answer.

Reference no: EM13266748

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