Assume that Zonk has a capital structure that has 70% debt with a pretax borrowing cost of 14% and 30% common equity. The cost of common equity is 8.28%. There is no preferred stock. Tax rate is 35%. Compute the weighted average cost of capital for Zonk. O 8.85% O 17.85% O 5.3% O 6.94% >

Assume that Zonk has a capital structure that has 70% debt with a pretax borrowing cost af 14% and 30% common equity. The cost of common equity is 8.28%. There is no preferred stock. Tax rate is 35%. Compute the weighted average cost of capital for Zonk. 8.85% 17.85% 5.3% 6.94%