Question 7 (1 point) A company has an EBIT of $5,339 in perpetuity. The unlevered cost of capital is 16.94%, and there are 28,662 common shares outstanding. The company is considering issuing $10,920 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 11.98% and the tax rate is 37%. What is the weighted average cost of capital after the restructuring? 13.72% 14.08% 14.43% 14.78% 15.13% Previous Page Next Page Page 7 of 25