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The Two Dollar Store has a cost of equity of 1 1 . 9 percent, the YTM on the company's bonds is 6 . 2

The Two Dollar Store has a cost of equity of 11.9 percent, the YTM on the company's bonds is
6.2 percent, and the tax rate is 25 percent. If the company's debt-equity ratio is .54, what is
the weighted average cost of capital?
7.19%
9.98%
8.27%
7.58%
9.36%
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