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The firm tax rate is 40% the firms pre-tax cost of debt is 8%; the firms debt-to-equity rastio is 3, the cost if equity is

The firm tax rate is 40% the firms pre-tax cost of debt is 8%; the firms debt-to-equity rastio is 3, the cost if equity is 12%. Calculate the weighted average cost of capital.

a. 9.00%

b. 7.13%

c. 6.60%

d. 4.80%

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