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Sigma Corp. has a target financing mix of 3 0 % debt and 7 0 % common equity. The before - tax cost of Sigma's

Sigma Corp. has a target financing mix of 30% debt and 70% common equity. The before-tax cost of Sigma's debt is 10%. Sigma estimates its cost of internal equity at 14% and its cost of new common equity at 17%. Sigma's marginal tax rate is 34%, and it expects to have $2,100,000 of profit available for reinvestment in the firm. Sigma's weighted cost of capital is:
a.14.28%
b.11.78%
c.13.88%
d.12.38%

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