Firm has a capital structure of debt and equity

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A firm has a capital structure of 30% debt and 70% equity. New bonds will have an after tax cost of 7.5% and the shareholders require a return on their investment of 18.5%. Assuming that the firm will not need to sell new shares, what is their weighted average cost of capital? Select one: 15.20% 21.00% 26.00% 10.80%

Reference no: EM131032045

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