What is the firms weighted average cost of capital

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Reference no: EM131049623

Jemisen's firm has expected earnings before interest and taxes of $1,400. Its unlevered cost of capital is 15 percent and its tax rate is 35 percent. The firm has debt with both a book and a face value of $2,000. This debt has a 7 percent coupon and pays interest annually. What is the firm's weighted average cost of capital?

13.51 percent

13.45 percent

13.68 percent

14.36 percent

13.98 percent

Reference no: EM131049623

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