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The Two Dollar Store has a cost of equity of 1 1 . 5 percent, the YTM on the company's bonds is 6 . 1

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
9.50%
8.46%
6.31%
9.27%
7.75%

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