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A firm has debt of $570,000, and a market value of equity of $5,400,000. Its cost of equity is 12%, and its after-tax cost of

A firm has debt of $570,000, and a market value of equity of $5,400,000. Its cost of equity is 12%, and its after-tax cost of debt is 6%. The weighted-average cost of capital is closest to:

a. 11.43%

b. 7.27%

c. 9% d. 6.57%

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