What is the firms weighted cost of capital

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Tinker bell has a capital structure of $60,000 in debt and $140,000 in equity. What is the firm's weighted cost of capital if the marginal pretax cost of debt is 12 percent, the firm's average pretax cost of debt outstanding is 8%, and the cost of equity is 14.5 percent? The tax rate for the firm is 40%.

Reference no: EM13915368

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