Cost of capital for a firm with debt-equity split

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Reference no: EM13828591

The company cost of capital for a firm with a 65/35 debt/equity split, 8% cost of debt, 15% cost of equity, and a 35% tax rate would be:

A. 7.02%.

B. 8.63%

C. 10.45%.

D. 13.80%.

Reference no: EM13828591

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