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you are analyzing the cost of capital for a firm that is financed with 60 percent equity and 40 percent debt. the after-tax cost of
you are analyzing the cost of capital for a firm that is financed with 60 percent equity and 40 percent debt. the after-tax cost of debt capital is 9 percent, while the cost of equity capital is 22 percent for the firm. what is the overall cost of capital for the firm?
a. 12.2%
b. 16.8%
c. 15.8%
d. 20%
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