9 Solve for the weighted average cost of capital. 10.68% K1 = cost of equity capital for a leveraged firm 0.2 points 1/3debt-to-total-market-value ratio 8.0% -1 before-tax borrowing cost 40.0% marginal corporate income tax rate 01:03:55 Multiple Choice 8.67 percent 8.00 percent 8.67 percent 8.00 percent 760 percent 7.33 percent