Explain what is the firm''s weighted average cost of capital

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Fancee Restaurant's cost of equity is 15.3 percent and its aftertax cost of debt is 6.1 percent. What is the firm's weighted average cost of capital if its debt-equity ratio is 0.58 and the tax rate is 30 percent?

8.94 percent

10.36 percent

11.92 percent

12.28 percent

13.01 percent

Reference no: EM13215019

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