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Easy as 123 is a for profit physical therapy clinic. Easy as 123's follows a capital structure of 40% equity 60% debt. Their cost of
"Easy as 123" is a for profit physical therapy clinic. Easy as 123's follows a capital structure of 40% equity 60% debt. Their cost of equity is 10% and the cost of debt is 6%. The current corporate tax rate is 25%. What is their Weighted Average Cost of Capital?
A.
8%
B.
7.6%
C.
8.8%
D.
6.7%
E.
None of these
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