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Luther's Famous Barbeque Has Estimated the Following Cost of Debt

Question 18

Multiple Choice

Luther's Famous Barbeque has estimated the following cost of debt before-tax) and cost of equity. Luther's Famous Barbeque has estimated the following cost of debt before-tax) and cost of equity. What is the cost of capital at Luther's optimal capital structure given the above information and a 40% effective tax rate? A) 8.71% B) 8.89% C) 9.03% D) 9.37%
What is the cost of capital at Luther's optimal capital structure given the above information and a 40% effective tax rate?


A) 8.71%
B) 8.89%
C) 9.03%
D) 9.37%

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