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SIROM Scientific Solutions has $10 million of outstanding equity and $10 million of bank debt. The bank debt costs 5% per year. The estimated equity
SIROM Scientific Solutions has $10 million of outstanding equity and $10 million of bank debt. The bank debt costs 5% per year. The estimated equity beta is 2. If the market risk premium is 9% and the risk-free rate is 4%, compute the weighted average cost of capital if the firm's tax rate is 30%. O A. 13.39% OB. 14.66% O C. 12.75% OD. 14.03%
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