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Skolits Corporation has a cost of equity of 11 percent and an aftertax cost of debt of 4.68 percent. The company's balance sheet lists long-term
Skolits Corporation has a cost of equity of 11 percent and an aftertax cost of debt of 4.68 percent. The company's balance sheet lists long-term debt of $380,000 and equity of $640,000. The company's bonds sell for 105.7 percent of par and market-to-book ratio is 3.04 times. If the company's tax rate is 39 percent, what is the WACC? Multiple Choice 9.13% 10.54% 9.61% 9.92% 8.65%
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