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Debt as a percentage of the total capital of Mazoon LLC. is 60%. Its cost of equity is 24% and the pre-tax cost of debt
Debt as a percentage of the total capital of Mazoon LLC. is 60%. Its cost of equity is 24% and the pre-tax cost of debt is 20%. The tax rate is 50%. What is the overall cost of capital of Mazoon LLC?
a.
17.6%
b.
14.6%
c.
15.6%
d.
13.6%
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