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What is the firm weighted average cost of capital

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Reference no: EM133013982

Problem - Boomer corporation has a cost of equity of 14.5%, a pre-tax cost of debt of 8% and a tax rate of 35%. What is the firm's weighted average cost of capital if the debt-equity ratio is 64%?

A. 8.98%

B. 10.87%

C. 11.3%

D. 6.25%

Reference no: EM133013982

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