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Comider the following balance sheet of a publicly held company Cash $760,000 Long Term Debt 17431.500 Receivables $1,250,000 Common Stocks $14,176,500 Inventories $2.225.000 Net Equipment

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Comider the following balance sheet of a publicly held company Cash $760,000 Long Term Debt 17431.500 Receivables $1,250,000 Common Stocks $14,176,500 Inventories $2.225.000 Net Equipment $17,575.000 ito estimated that the yield to muturity on bonds are 9 The company faces a marginal tas rate of 3% Asume that stock price of this company res such that it would set at 1.35 times its book value anunt the balance sheet cousing its cost of equity to move to 11.5% What would be the weighted average cost of capital for this firm O 10 99% D'9.91% O BAIN 031 %

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