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Find what is the company weighted average cost of capital

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Reference no: EM132962571

Problem 1: Chuppy's has a target debt-equity ratio of 1.26. Its cost of equity is 14.5 percent, its pretax cost of debt is nine percent, and its tax rate is 21 percent. What is the company's weighted average cost of capital?

A. 7.47%

B. 12.05%

C. 11.23%

D. 11.43%

E. 10.38%

Reference no: EM132962571

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