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Wentworth's Five and Dime Store has a cost of equity of 1 2 . 7 percent. The company has an aftertax cost of debt of

Wentworth's Five and Dime Store has a cost of equity of 12.7 percent. The company has an aftertax cost of debt of 4.4 percent, and the tax rate is 23 percent. If the company's debt-equity ratio is .87, what is the weighted average cost of capital?
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7.26%
8.37%
6.66%
8.84%
7.72%
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