Interest and taxes-weighted average cost of capital

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Thompson & Jones has earnings before interest and taxes of $149,000. Both the book and the market value of debt is $265,000. The unlevered cost of equity is 13.5 percent while the pre-tax cost of debt is 9 percent. The tax rate is 34 percent. What is Thompson & Jones' weighted average cost of capital?

Reference no: EM13946864

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