What is the firms weighted average cost

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Reference no: EM13261633

The General Store has a cost of equity of 15.8 percent, a pre-tax cost of debt of 7.7 percent, and a tax rate of 32 percent. What is the firm's weighted average cost of capital if the debt-equity ratio is 0.40?

A. 10.18 percent
B. 11.72 percent
C. 12.78 percent
D. 13.30 percent
E. 14.93 percent

Reference no: EM13261633

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