Estimation of weighted average cost of capital

Reference no: EM1360900

The Felix Filter Corp. maintains a debt-equity ratio of .6. The cost of equity is 16%, the cost of debt is 11% and the marginal tax rate is 30%. What is the weighted average cost of capital?

A. 8.38%
B. 11.02%
C. 12.89%
D. 13.00%
E. 14.12%

Reference no: EM1360900

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