What is the firm weighted average cost of capital

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Barles Charkley Resorts, a hotel chain located in the Annapolis, has expected earnings before interest and taxes of $7.1 million. Its unlevered cost of capital is 14.6 percent and its tax rate is 37 percent. The firm has debt with both a book and a market value of $8.7 million. This debt has a 4.1 percent coupon and pays interest annually. What is the firm's weighted average cost of capital?

Reference no: EM131336254

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