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The Rogers Companyhas a cost of equity of 11.0%and a pre-tax cost of debt of 7.0%. The firm maintains a debt-equity ratio of 0.5 and
The Rogers Companyhas a cost of equity of 11.0%and a pre-tax cost of debt of 7.0%. The firm maintains a debt-equity ratio of 0.5 and has a tax rate of 35% . What is the firm's weighted averagecost of capital?
a) 7.13%
b) 8.42%
c) 8.85%
d)9.16%
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