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Kosmo, Inc. has a market value capital structure of 2 5 % debt and 7 5 % equity. The tax rate is 4 0 %

Kosmo, Inc. has a market value capital structure of 25% debt and 75% equity. The tax rate is 40%. The firm's bonds currently trade in the market for $930. These bonds have a face value of $1,000, coupon rate of 8% paid semiannually, and 10 years remaining to maturity. The firm's common stock trades for $15 per share. The firm has just paid a dividend of $2.00(i.e.,D0=2.00). Future dividends are expected to grow at 3% per year. Based on this information, Ma, Inc.'s WACC is %.
13.26
11.94
12.17
13.91
10.98
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