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The following information relates to the Falcon Division of Xenon Enterprises: Interest rate on debt capital 7 % Cost of equity capital 11 % Market

The following information relates to the Falcon Division of Xenon Enterprises: Interest rate on debt capital 7 % Cost of equity capital 11 % Market value of debt capital $ 58 million Market value of equity capital $ 88 million Income tax rate 40 % On the basis of this information, Falcons weighted-average cost of capital is closest to: Multiple Choice 4.10%. 8.25%. 8.30%. 9.41%. None of the answers is correct.

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