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Company Y has expected earnings before interest and taxes of $11,900. Its unlevered cost of capital is 12.8% and its tax rate is 21%. The

Company Y has expected earnings before interest and taxes of $11,900. Its unlevered cost of capital is 12.8% and its tax rate is 21%. The company has debt with both a book and a face value of $12,500. This debt has a coupon rate of 7.6% and pays interest annually. What is the weighted average cost of capital?

Options: 11.38% 12.87% 12.09% 12.48% 12.36%

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