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The Two Dollar Store has a cost of equity of 12.7 percent, the YTM on the company's bonds is 5.4 percent, and the tax rate

The Two Dollar Store has a cost of equity of 12.7 percent, the YTM on the company's bonds is 5.4 percent, and the tax rate is 21 percent. If the company's debt-equity ratio is .62, what is the weighted average cost of capital?

Multiple Choice

9.47%
6.86%
8.67%
7.94%
9.68%

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