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Cloudy Inc. provides the following information. The firm has 21% tax rate. What is their cost of capital? Source of Capital Amount Before-tax Cost Long-term

Cloudy Inc. provides the following information. The firm has 21% tax rate. What is their cost of capital?

Source of Capital Amount Before-tax Cost
Long-term Debt $40,000 10%
Common stock $60,000 15%

Question 4 options:

14.90%

13%

16%

12.16%

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