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Banana Electric is a public company with the following details: Risk free rate 2.0% MRP 5.0% Observed Beta 1.0 Price per share $10.00 Shares outstanding

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Banana Electric is a public company with the following details: Risk free rate 2.0% MRP 5.0% Observed Beta 1.0 Price per share $10.00 Shares outstanding 1,000.0 Debt (market value) 200.0 Cash 1,500.0 Cost of debt 2.0% Tax rate 0.0% Question: Calculate the weighted average cost of capital. 6.56% 6.90% O 7.75% 8.05% 8.74%

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