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Wacko Ltd. has $40 million to debt, equity of $65 million, an after tax cost of debt of 5 percent, a cost of equity of

Wacko Ltd. has $40 million to debt, equity of $65 million, an after tax cost of debt of 5 percent, a cost of equity of 8 percent, and a tax rate of 30 percent. The firm's weighted average cost of capital (WACC) is

A. 6.86%

B. 6.29%

C. none of these

D. 4.80%

E. 5.37%

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Wacko Ltd. has $40 million to debt, equity of $65 million, an after tax cost of debt of 5 percent, a cost of equity of

Wacko Ltd. has $40 million to debt, equity of $65 million, an after tax cost of debt of 5 percent, a cost of equity of 8 percent, and a tax rate of 30 percent. The firm's weighted average cost of capital (WACC) is A. 6.86% B. 6.29% C. none of these D. 4.80% E. 5.37%

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Wacko Ltd. has $40 million to debt, equity of $65 million, an after tax cost of debt of 5 percent, a cost of equity of 8 percent, and a tax rate of 30 percent. The firm's weighted average cost of capital (WACC) is

A. 6.86%

B. 6.29%

C. none of these

D. 4.80%

E. 5.37%