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35 The following information relates to the Atlantic Division ofOcean Enterprises: Interest rate on debt capital: 8% Cost of equity capital. I 2% Market value

35 The following information relates to the Atlantic Division ofOcean Enterprises: Interest rate on debt capital: 8% Cost of equity capital. I 2% Market value of debt capital: $50 million Market value of equity capital: $80 million Income tax rate: 30% On the basis of this information, Atlantic's weighted-average cost of capital is: A. 7.3%. B. 8.3%. D. 10.8%. some other figure. E. Answer: C LO: 2 Type: A E En

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