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Wentworth's Five and Dime Store has a cost of equity of 10.7 percent. The company has an aftertax cost of debt of 4.3 percent, and
Wentworth's Five and Dime Store has a cost of equity of 10.7 percent. The company has an aftertax cost of debt of 4.3 percent, and the tax rate is 23 percent. If the company's debt-equity ratio is .67, what is the weighted average cost of capital?
a.7.74%
b.6.24%
c.6.28%
d.8.13%
e.6.80%
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