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Cartoon Emporium has a cost of equity of 14 percent, a pre-tax cost of debt of 6.5 percent, and a tax rate of 21 percent.

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Cartoon Emporium has a cost of equity of 14 percent, a pre-tax cost of debt of 6.5 percent, and a tax rate of 21 percent. It does not have any preferred stock. If the debt-equity ratio is 0.3, what is the firm's weighted average cost of capital? None of the answers is correct. 12.78 percent 14.93 percent 20.50 percent 11.95 percent

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