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Phils Carvings, Inc. has an after-tax cost of debt of 5% and a cost of equity of 11%. Its debt to value ratio is 0.4.

Phils Carvings, Inc. has an after-tax cost of debt of 5% and a cost of equity of 11%. Its debt to value ratio is 0.4. What is its weighted average cost of capital?

Group of answer choices

5.0%

5.8%

8.0%

8.6%

9.2%

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