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Jensen's Has a Total Value of $548,000 and Debt Valued

Question 47

Multiple Choice

Jensen's has a total value of $548,000 and debt valued at $262,000.What is the weighted average cost of capital if the aftertax cost of debt is 7.2 percent and the cost of equity is 12.6 percent?


A) 11.13 percent
B) 10.88 percent
C) 10.02 percent
D) 12.13 percent
E) 11.48 percent

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