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SIROM Scientific Solutions has $5 million of outstanding equity and $10 million of bank debt. The bank debt costs 4% per year. The estimated equity
SIROM Scientific Solutions has $5 million of outstanding equity and $10 million of bank debt. The bank debt costs 4% per year. The estimated equity beta is 2. If the market risk premium is 7% and the risk-free rate is 3%, compute the weighted average cost of capital if the firm's tax rate is 30%. O A. 7.91% OB. 8.29% O C. 8.66% OD. 7.53%
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