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Assume that investors hold Alphabet Inc (GOOGL) stock in retirement accounts that are free from personal taxes. Also assume that GOOGL's currentpre-tax WACC is 14%

Assume that investors holdAlphabet Inc (GOOGL)stock in retirement accounts that are free from personal taxes. Also assume that GOOGL's currentpre-tax WACC is 14% and its corporate tax rate is 35%. IfGOOGLwere to issue sufficient debt at apre-tax cost of 7% to give them a debt to value ratio of 0.5, then the Google's after-tax WACC would be closest to:

10.4%

12.8%

15.0%

16.0%

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