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The Damian Priest Store ( DPS ) has a cost of equity of 1 1 . 7 percent, a cost of debt of 6 .

The Damian Priest Store (DPS) has a cost of equity of 11.7 percent, a cost of debt of 6.3 percent, and a tax rate of 21 percent. If DPS has a market value debt-equity ratio of .52, what is the weighted average cost of capital for DPS?
Multiple Choice
9.40%
8.45%
6.70%
9.70%

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