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A firm has $100 million in stock and $300 million in bonds. The firms borrwoing rate is 8% and the expected return on the stock

A firm has $100 million in stock and $300 million in bonds. The firms borrwoing rate is 8% and the expected return on the stock is 20%. The corporate tax rate is 30%. What is the firms weighted average cost of capital?

A) 8%

B) 8.8%

C) 9.2%

D) 12%

E) 16%

F) 20%

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