What is the ventures weighted average cost of capital

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Reference no: EM13894302

A venture has raised $4,000 of debt and $6,000 of equity to finance its firm. Its cost of borrowing is 6%, its tax rate is 40%, and its cost of equity capital is 8%. What is the venture's weighted average cost of capital?

A) 8%

B) 7.2%

C) 7%

D) 6.24%

E) 6%

Reference no: EM13894302

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