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A company has determined that its optimal capital structure consists of 40 percent debt and 60 percent equity. Given the following information, calculate the firm's

A company has determined that its optimal capital structure consists of 40 percent debt and 60 percent equity. Given the following information, calculate the firm's weighted average cost of capital. rd = 6% Tax rate = 40% P0 = $25 Growth = 0% D0 = $2.00 a. 6.2% b. 8.0% c. 7.2% d. 6.0% e. 7.0%

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