What is its weighted average cost of capital

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Question: Christophorus Company can obtain debt financing at 12 percent and can offer common shares at $80 per share. It has a marginal income tax rate of 25 percent. The yield on US Treasury securities is 3 percent. The market risk premium is 6.0 percent, and the firm's beta is 1.1. It has a targeted debt-to-equity ratio of 1:1. What is its weighted average cost of capital?

Reference no: EM133377421

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