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Take It All Away has a cost of equity of 10.81 percent, a pretax cost of debt of 6.45 percent, and a tax rate of
Take It All Away has a cost of equity of 10.81 percent, a pretax cost of debt of 6.45 percent, and a tax rate of 35 percent. The company's capital structure consists of 77 percent debt on a book value basis, but debt is 27 percent of the company's value on a market value basis. What is the company's WACC?
A. 6.78% B. 8.85% C. 9.40% D. 8.12% E. 10.43%
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