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D/E And WACC The Two Dollar Store has a cost of equity of 11.6 percent, the YTM on the company's bonds is 6.2 percent, and

D/E And WACC

The Two Dollar Store has a cost of equity of 11.6 percent, the YTM on the company's bonds is 6.2 percent, and the tax rate is 40 percent. If the company's debtequity ratio is .51, what is the weighted average cost of capital? Multiple Choice

8.94%

9.53%

6.38%

8.52%

7.81%

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