Determine what is the firm weighted average cost of capital

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Problem 1: Andrea's Markets has debt of $318,200, equity of $493,500, an aftertax cost of debt of 6.80 percent, a cost of equity of 13.39 percent, and a tax rate of 34 percent. What is the firm's weighted average cost of capital?

Multiple Choice

Option 1: -9.87%
Option 2: -9.90%
Option 3: -10.05%
Option 4: -10.94%
Option 5: -10.81%

Reference no: EM132746376

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