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PinderLtd operates under the classical tax system. The market value of Pinder Ltds debt and equity are $2,000,000 and $3,000,000, respectively. The before-tax cost of

PinderLtd operates under the classical tax system. The market value of Pinder Ltds debt and equity are $2,000,000 and $3,000,000, respectively. The before-tax cost of borrowing for Pinder Ltd is 8% and the cost of equity is 15%. If Pinder Ltds tax rate is 30%, what is Pinder Ltds weighted average cost of capital?

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