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Consider the information for the following four firms: Firms Cash Debt Equity r_D r_E t_c A 10 125 145 7.50% 14.00% 40.00% B 35 225
Consider the information for the following four firms:
| Firms | Cash | Debt | Equity | r_D | r_E | t_c |
| A | 10 | 125 | 145 | 7.50% | 14.00% | 40.00% |
| B | 35 | 225 | 625 | 6.50% | 11.00% | 35.00% |
| C | 50 | 175 | 325 | 5.00% | 10.50% | 35.00% |
| D | 60 | 350 | 150 | 3.50% | 9.50% | 30.00% |
Note that these companies have different tax rates due to their specific situations. The weighted average cost of capital for firm B is closest to:
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