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. Park Forest Corporation strives to maintain a capital structure of 42% debt and 58% equity. Analysts at Palatine Investment Bank have stated that if
. Park Forest Corporation strives to maintain a capital structure of 42% debt and 58% equity. Analysts at Palatine Investment Bank have stated that if the company were to borrow money, it would have to pay an annual interest rate of 4.7% (kd). The owners' required rate of return on common equity is 9.2% (ke) annually. 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)? O A. 6.59% OB. 6.95% OC. 7.31% OD. 6.82% OE. 5.91%
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