What is firms weighted average cost of capital

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Harlan County Mining, a Kentucky-based coal mine, has expected earnings before interest and taxes of $6.2 million. Its unlevered cost of capital is 13 percent and its tax rate is 34 percent. The firm has debt with both a book and a market value of $3.2 million. This debt has a 4.1 percent coupon and pays interest annually. What is the firm's weighted average cost of capital?

Reference no: EM13917935

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