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ABC Co . ' s cost of equity is 1 0 % . The YTM of its outstanding debt is 9 % , and its

ABC Co

.'

s cost of equity is

10 % .

The YTM of its outstanding debt is

9 %,

and its marginal tax rate is

40 % .

The market value of its equity is $

1, 728, 000

and the market value of its debt is $

1, 152, 000 .

What is ABC's weighted average cost of capital? Enter your answer as a decimal, rounded to

4

decimal places.

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