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Wentworth's Five and Dime Store has a cost of equity of 1 0 . 5 percent. The company has an aftertax cost of debt of

Wentworth's Five and Dime Store has a cost of equity of 10.5 percent. The company has an aftertax cost of debt of 4.1 percent, and the tax rate is 21 percent. If the company's debt-equity ratio is .65, what is the weighted average cost of capital?
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6.35%
5.75%
7.98%
7.41%
6.93%

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