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Andrea's Markets Has Debt of $318,200,equity of $493,500,an Aftertax Cost

Question 9

Multiple Choice

Andrea's Markets has debt of $318,200,equity of $493,500,an aftertax cost of debt of 6.80 percent,a cost of equity of 13.39 percent,and a tax rate of 34 percent.What is the firm's weighted average cost of capital?


A) 9.90%
B) 10.94%
C) 9.87%
D) 10.81%
E) 10.05%

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