Reference no: EM13870738
A firm has debt of $90,000, equity of $140,000, a leveraged value of $100,000, a cost of debt of 6%, a cost of equity of 12%, and a tax rate of 40%. What is the firm's weighted average cost of capital?
A. 8.15%
B. 8.40%
C. 8.70%
D. 9.30%
E. None of these
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