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Carrington Corporations after-tax cost of debt is 9%, and its cost of equity is 15%. Of the following interestrates: 8%, 10%, 12%, 14%, 16%, 18%,

Carrington Corporations after-tax cost of debt is 9%, and its cost of equity is 15%. Of the following interestrates:

8%, 10%, 12%, 14%, 16%, 18%, 20%

Using what you know about weighted average cost of capital(WACC), which of the above are possible WACCs forCarrington? Pick all that you cannot rule out.

A.

12%

B.

12%, 14%, 16%

C.

10%

D.

Any of these are possible

E.

14%

F.

8%, 10%, 12%

G.

10%, 12%, 14%

H.

14%, 16%, 18%, 20%

I.

16%, 18%, 20%

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