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Three years after the acquisition, the company is doing very well and has taken on some debt from opening more and more restaurants. In fact,
Three years after the acquisition, the company is doing very well and has taken on some debt from opening more and more restaurants. In fact, the company is mostly looked at as a seafood restaurant now despite its other divisions. The capital structure is similar to other companies in the seafood restaurant industry with NAICS Code 722511. Smith Brothers has a debt-equity ratio of 55 and a tax rate of 21 percent. The cost of equity is now 16.3 percent and the after-tax cost of debt is 5.21 percent. What is the firm's weighted average cost of capital? 11.93% 12.36% 12.32% O 10.09% 1241% 9.09% 12.46%
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