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A firm has a debt-equity ratio of 0.80. The cost of equity is 14.5 percent and the aftertax cost of debt is 4.9 percent. What

  1. A firm has a debt-equity ratio of 0.80. The cost of equity is 14.5 percent and the aftertax cost of debt is 4.9 percent. What is the Weighted Average Cost of Capital?

    a.

    11.23%

    b.

    13.21%

    c.

    14.39%

    d.

    10.23%

    e.

    10%

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