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Ronnie's Comics has found that its cost of common equity is 15 percent and its cost of debt is 12 percent. The firm is

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Ronnie's Comics has found that its cost of common equity is 15 percent and its cost of debt is 12 percent. The firm is financed with $300,000,000 of common shares (market value) and $700,000,000 of debt. What is the after-tax weighted average cost of capital for Ronnie's, if it is subject to a 35 percent marginal tax rate? 9.60% 12.90% 11.33% 9.96%

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