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Fama Financial has a cost of equity of 12.1 percent, the YTM on the company's bonds is 5.9 percent, and the tax rate is 39

Fama Financial has a cost of equity of 12.1 percent, the YTM on the company's bonds is 5.9 percent, and the tax rate is 39 percent. If the company's debtequity ratio is .56, what is the weighted average cost of capital? Multiple Choice

9.05%

9.65%

8.58%

6.65%

7.87%

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