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1 0 . ) Olivanders has earnings before interest and taxes of $ 8 0 0 , 0 0 0 . Both the book and

10.) Olivanders has earnings before interest and taxes of $800,000. Both the book and the market value of debt is $433,000.
The unlevered cost of equity is 14 percent while the pre-tax cost of debt is 7 percent. The tax rate is 35 percent. What is the firm's weighted average cost of capital?
a.11.48%
b.13.45%
c.12.65%
d.16.62%
e.14.01%

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