Multiple Choice
KN Stitches has debt of $26,000, a leveraged value of $78,400, a pretax cost of debt of 7.05 percent, a cost of equity of 15.3 percent, and a tax rate of 21 percent. What is the weighted average cost of capital?
A) 11.47 percent
B) 12.12 percent
C) 11.69 percent
D) 12.07 percent
E) 12.02 percent
Correct Answer:
Verified
Correct Answer:
Verified
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