Given the following capital structure, what is the approximate weighted average cost of capital? The tax rate is 30%. Source of Financing Book Value Market value Cost of financing Bank Loan $1,000 $1,000 12% Bonds $600 $500 10% Equity $2,000 $2,500 8%

Question 9 options:

12.0%.

9.0%.

8.0%.

10.0%.

6.0%.

11.0%.