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Company ABC has $200B in debt, and $800B in common stock outstanding. Their interest cost on the debt is 10%. Their cost of common stock

Company ABC has $200B in debt, and $800B in common stock outstanding. Their interest cost on the debt is 10%. Their cost of common stock is 8%. Company ABCs tax rate is 25%. What is the weighted average cost of capital? (Use the table below to help with your calculations) (nearest number).

Capital

Capitalization Amount

Capitalization Ratio

Pre-Tax Cost

After-Tax Cost

Weighted Cost

Debt

Equity

Total

Group of answer choices

7.90%

8.58%

6.74%

7.56%

7.13%

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