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A firm with a 4 0 percent marginal tax rate has a capital structure of $ 5 0 , 0 0 0 in debt and

A firm with a 40 percent marginal tax rate has a capital structure of $50,000 in debt and $150,000 in equity. What is the firm's weighted cost of capital if the marginal pretax cost of debt is 10 percent, and the cost of equity is 12 percent?
9.30%
11.22%
8.55%
11.95%
10.50%
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