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The Two Dollar Store has a cost of equity of 11.8 percent, the YTM on the company's bonds is 6.3 percent, and the tax rate
The Two Dollar Store has a cost of equity of 11.8 percent, the YTM on the company's bonds is 6.3 percent, and the tax rate is 21 percent. If the company's debt-equity ratio is .53, what is the weighted average cost of capital?
Multiple Choice
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7.85%
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9.44%
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6.60%
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9.65%
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8.56%
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