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What is the weighted average cost of capital (WACC) for a firm with debt to equity (D/S) ratio of 30% that pays 6% yield to

What is the weighted average cost of capital (WACC) for a firm with debt to equity (D/S) ratio of 30% that pays 6% yield to maturity on its bond, 11% required return on its stock, and has a 40% tax rate?

  • A. 10.3%
  • B. 10.6%
  • C. 9.23%
  • D. 12.5%
  • E. 8.52%

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