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Martin Chemicals has a target debt to equity ration of 0.50. Its cost of equity is 12%, after-tax cost of debt is 8%, and tax

Martin Chemicals has a target debt to equity ration of 0.50. Its cost of equity is 12%, after-tax cost of debt is 8%, and tax rate is 40%. What is the company's WACC?

a. 9.60%

b. 10.67%

c. 9.30%

d. 7.68%

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