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Brown Street Grocers has a cost of equity of 11.8 percent, a pre-tax cost of debt of 6.9 percent, and a tax rate of 35
Brown Street Grocers has a cost of equity of 11.8 percent, a pre-tax cost of debt of 6.9 percent, and a tax rate of 35 percent. What is the firm's weighted average cost of capital if the debt-equity ratio is 0.6?
A) | 2.08 percent | |
B) | 8.44 percent | |
C) | 9.06 percent | |
D) | 11.80 percent | |
E) | 9.70 percent |
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