The NuPress Valet Co has a before tax cost of debt of 9 and a cost of equity of 13 The firm has 50 debt and 50 equity The tax rate is 34 What is the weighted average cost of capital for the NuPress Valet Co A 8 65 B 9 C 9 47 D 10 5 E 13

Question

The NuPress Valet Co  has a before tax cost of debt of 9  and a cost of equity of 13   The firm has 50  debt and 50  equity  The tax rate is 34   What is the weighted average cost of capital for the NuPress Valet Co   A  8 65  B  9  C  9 47  D  10 5  E  13

Accepted Answer

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	A.	8.65%
	B.	9%
	C.	9.47%
	D.	10.5%
	E.	13%

Question

The NuPress Valet Co. has a before-tax cost of debt of 9% and a cost of equity of 13%. The firm has 50% debt and

The NuPress Valet Co. has a before-tax cost of debt of 9% and a cost of equity of 13%. The firm has 50% debt and 50% equity. The tax rate is 34%. What is the weighted average cost of capital for the NuPress Valet Co.?

A.

8.65%

B.

9%

C.

9.47%

D.

10.5%

E.

13%

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