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Dzyubenko Co. reported these data at year end: The long-term debt has an interest rate of 8%, and its fair value equaled its book value

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Dzyubenko Co. reported these data at year end: The long-term debt has an interest rate of 8%, and its fair value equaled its book value at year-end. The fair value of the equity capital is $2 million greater than its book value. Dzyubenko's income tax rate is 25%, and its cost of equity capital is 10%. (Refers to Fact Pattern 2) What is the weighted-average cost of capital (WACC) to be used in the economic value added (EVA) calculation? 10% 8.0% 9% 8.89%

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