Compute the weighted average cost of capital for each of these firms. Assume a marginal tax rate of 40 percent.

- A. B. C. D. E.	Target capital structure is 40% debt and 60% common equity. Yield to maturity on bonds is 8.5% and expected return on common equity is 11.1%.
- A. B. C. D. E.	Target capital structure is 30% debt and 70% common equity. Yield to maturity on bonds is 6.7% and expected return on common equity is 9.5%.
- A. B. C. D. E.	Target capital structure is 10% debt and 90% common equity. Yield to maturity on bonds is 7.9% and expected return on common equity is 9.9%.
- A. B. C. D. E.	Target capital structure is 60% debt and 40% common equity. Yield to maturity on bonds is 4.9% and expected return on common equity is 12.1%.
- A. B. C. D. E.	Target capital structure is 80% debt and 20% common equity. Yield to maturity on bonds is 6.1% and expected return on common equity is 16.0%.

A.	8.7%
B.	6.6%
C.	7.9%
D.	9.4%
E.	6.1%