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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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