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The Two Dollar Store has a cost of equity of 11.5 percent, the YTM on the company's bonds is 6.1 percent, and the tax rate
The Two Dollar Store has a cost of equity of 11.5 percent, the YTM on the company's bonds is 6.1 percent, and the tax rate is 21 percent. If the company's debt-equity ratio is .50, what is the weighted average cost of capital?
The Two Dollar Store has a cost of equity of 11.5 percent, the YTM on the company's bonds is 6.1 percent, and the tax rate is 21 percent. If the company's debt-equity ratio is 50 , what is the weighted average cost of capital? Multiple Choice 9.89% 7.05% 7.42% 8.09% 9.27%Step by Step Solution
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