The company cost of capital, pretax for a firm with a 60/40 debt/equity split, 8% cost of debt, 15% cost of equity, and a 35% tax rate would be 13.80% 7.02% 9.12% O 10.80% 7. value 1.00 points for purposes of computing the WACC, if the book value of equity exceeds the market value of equity, then: O the market value of equity less retained earnings should be used O the book value of equity less retained earnings should be used. the market value of equity should be used. O the book value of equity should be used