Question 11 (1 point) A company has an EBIT of $3,715 in perpetuity. The unlevered cost of capital is 14.30%, and there are 20,570 common shares outstanding. The company is considering issuing $8,160 in new bonds at par to add financial leverage. The proceeds of the debt issue will be used to repurchase equity. The YTM of the new debt is 9.45% and the tax rate is 26%. What is the weighted average cost of capital after the restructuring? 12.56% 12.88% 13.20% 13.52% 13.84% Previous Page Next Page Page 11 of 25