TB MC Qu. 14-78 Granite Works maintains a debt-equity ratio... Granite Works maintains a debt-equity ratio of .58 and has a tax rate of 21 percent. The pretax cost of debt is 8.9 percent. There are 18,000 shares of stock outstanding with a beta of 1.42 and a market price of $23 a share. The current market risk premium is 78 percent and the current risk-free rate is 31 percent. This year, the firm pald an annual dividend of $1.68 a share and expects to increase that amount by 2 percent each year Using an average expected cost of equity, what is the weighted average cost of capital? Multiple Choice 9.78 percent 9.13 percent 8.96 percent 8.44 percent 10.06 percent