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The following information relates to the Atlas Division of Global Enterprises: Interest rate on debt capital: 10% Cost of equity capital: 14% Market value of
The following information relates to the Atlas Division of Global Enterprises: Interest rate on debt capital: 10% Cost of equity capital: 14% Market value of debt capital: $52 million Market value of equity capital: $82 million Income tax rate: 40% On the basis of this information, Atlas's weighted-average cost of capital is closest to (Do not round your intermediate calculations.):
5.25%.
10.65%.
10.90%.
12.45%.
None of these.
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