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MaxVal Co . has expected earnings before interest and taxes of $ 5 , 0 0 0 . 0 0 . Its unlevered cost of

MaxVal Co. has expected earnings before interest and taxes of $5,000.00. Its unlevered cost of capital is 11.00% and its tax rate is 34.00%. MaxVal Co. has debt with both a book and a face value of $3,000.00. This debt has 8% coupon and pays interest annually. What is the firm's weighted average cost of capital?
a)10.64%
b)9.57%
c)10.74%
d)11.00%
e)8.40%

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