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Mozambique Mower Corporation strives to maintain a capital structure of 42% debt and 58% equity. Investment bankers have stated that if the company were to

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Mozambique Mower Corporation strives to maintain a capital structure of 42% debt and 58% equity. Investment bankers have stated that if the company were to borrow money, it would have to pay an annual interest rate of 7.4% (kd). The annual return on equity that common stockholders would expect for providing money (ke) is 11.8%. The firm's marginal income tax rate is a combined federal-plus-state 25%. What is its annual weighted average cost of capital (kA or WACC)? (Answers given are rounded to two decimal places.) O A. 9.25% O B.9.18% OC. 9.60% O D. 8.18% E. 9.9596 Dornt role

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