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HELP THERE IS A TIME LIMIT SIROM Scientific Solutions has $10 million of outstanding equity and $5 million of bank debt. The bank debt costs
HELP THERE IS A TIME LIMIT
SIROM Scientific Solutions has $10 million of outstanding equity and $5 million of bank debt. The bank debt costs 6% per year. The estimated equity beta is 2. If the market risk premium is 7% and the risk-free rate is 3%, compute the weighted average cost of capital if the firm's tax rate is 35%. A. 14.53% B. 13.9% C. 12.63% D. 13.26%Step by Step Solution
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