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Jemisen's firm has expected earnings before interest and taxes of $1,400. Its unlevered cost of capital is 14 percent and its tax rate is 34

Jemisen's firm has expected earnings before interest and taxes of $1,400. Its unlevered cost of capital is 14 percent and its tax rate is 34 percent. The firm has debt with both a book and a face value of $1,800. This debt has a 7 percent coupon and pays interest annually. What is the firm's weighted average cost of capital? 13.04 percent 12.81 percent 13.72 percent 13.34 percent 12.87 percent

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