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Find the weighted average cost of capital for a firm that has a debt-to-equity ratio of 1, a tax rate of 34%, a levered cost

Find the weighted average cost of capital for a firm that has a debt-to-equity ratio of 1, a tax rate of 34%, a levered cost of equity of 12% and a pre-tax cost of debt of 10%.

  • A. 9.6%
  • B. 7.968%
  • C. 8.76%
  • D. none of the above

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