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Skolits Corporation has a cost of equity of 11.4 percent and an aftertax cost of debt of 4.32 percent. The company's balance sheet lists long-term
Skolits Corporation has a cost of equity of 11.4 percent and an aftertax cost of debt of 4.32 percent. The company's balance sheet lists long-term debt of $320,000 and equity of $580,000. The company's bonds sell for 95.9 percent of par and market-to-book ratio is 2.68 times. If the company's tax rate is 21 percent, what is the WACC? Multiple Choice 10.87% 8.88% 9.98% 10.23% 9.43%
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