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A company has a debt-to-equity ratio of 3:2. Its cost of equity is 14% and corporate tax rate is 25%. What is the weighted average

A company has a debt-to-equity ratio of 3:2. Its cost of equity is 14% and corporate tax rate is 25%. What is the weighted average cost of capital for the company if its bond investors expect a yield of 12% on their investment? A. 13% B. 11% C. 9% D. 3% E. None of the above is correct.

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