Weighted average cost of capital if the debt-equity ratio

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Reference no: EM13767783

The Five & Dime store has a cost of equity of 15.8%, a pretax cost of 7.7%, and a tax rate of 35%. What is the firm's weighted average cost of capital if the debt-equity ratio is 0.40?

a. 10.18

b. 11.72

c. 12.72

d. 13.49

e. 14.93

Reference no: EM13767783

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