Question $8$

Bills Inc. has a before$-$tax cost of debt of $6\%$ and a cost of equity of $12\%.$ The firm has $30\%$

debt and $70\%$ equity. The tax rate is $34\%.$ What is the weighted average cost of capital for

the Bills Inc.?

$8\mathrm{.}29\%$

$9\mathrm{.}02\%$

$9\mathrm{.}59\%$

$12\mathrm{.}28\%$

$12\mathrm{.}42\%$