Gemini weighted average cost of capital

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Reference no: EM132828578

Gemini Corporation has summarized its capital structure as follows:

Component Cost of Capital Market Value

Long-term Bonds 5.8% after tax $ 150,000

Common Stock 12.5% $ 450,000

Based on the above information, Gemini's weighted average cost of capital is:

  • 10.83%
  • 11.50%
  • 16.70%
  • 12.50%
  • None of these

Reference no: EM132828578

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