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8) Wentworth's Five and Dime Store has a cost of equity of 12.6 percent. The company has an aftertax cost of debt of 4.5 percent,

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8) Wentworth's Five and Dime Store has a cost of equity of 12.6 percent. The company has an aftertax cost of debt of 4.5 percent, and the tax rate is 21 percent. If the company's debt-equity ratio is .86, what is the weighted average cost of capital? A) 7.30% B) 8.85% C) 7.59% D) 8.04% E) 6.95%

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