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Pete's Garden House has a cost of equity of 15.6 percent, an aftertax cost of debt of 7.1 percent, a debt-equity ratio of 0.45, and

Pete's Garden House has a cost of equity of 15.6 percent, an aftertax cost of debt of 7.1 percent, a debt-equity ratio of 0.45, and a tax rate of 35 percent. What is the firm's weighted average cost of capital? A) 12.19 percent B) 12.27 percent C) 12.77 percent D) 12.96 percent

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